VeloBank has acquired an investor
VeloBank has acquired an investor who is a subsidiary of the fund Cerberus Capital Management, LP, based in New York, which will recapitalize the bank in the amount of PLN 700 million. The new investor plans to continue cooperation with the team, appreciating their efforts so far in building the bank. The transaction confirms the attractiveness of the Polish banking sector – we read in VeloBank's press release.
As the bank explains, the agreement signed on Friday in Warsaw is a key stage of the resolution process implemented as planned. It confirms the bank's strong position, and for customers it means further, stable development of a modern and attractive product offer. The finalization of the transaction, after obtaining the necessary consents from the European Commission and the Polish Financial Supervision Authority, is expected in mid-2024.
– For the first time in the history of Poland, in the interest of consumer protection, a bank was established, whose team took up and implemented the challenge of creating a strong brand on a competitive market as part of the resolution process. The goal was to attract an investor within 1.5 years, in accordance with the requirements of the European Commission. A successful transaction is a joint achievement of all VeloBank employees and the owner, the Bank Guarantee Fund – says Adam Marciniak, President of VeloBank.
In addition, the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), an entity of the World Bank Group, have obtained approvals from the Operations and Investment Committees, respectively, for a potential capital commitment to VeloBank, subject to the approval of their respective boards of directors and binding documentation legal. IFC and EBRD may indirectly acquire up to 9.9% of shares in VeloBank each – it was added.
Who is Cerberus?
Founded in 1992, Cerberus has experience investing in financial institutions around the world and in Europe, including CCF and My Money Bank in France, Hamburg Commercial Bank in Germany and BAWAG in Austria. It has been approved by a number of European regulatory authorities, including French, Austrian and German, as well as the European Central Bank. It has assets worth approximately USD 60 billion, engaged in complementary strategies on the credit, capital and real estate markets – stated in the press release.
