An affiliated entity of Cerberus Capital Management, L.P. (“Cerberus”), the European Bank for Reconstruction and Development (“EBRD”) and the International Finance Corporation (“IFC”, an organization part of the World Bank Group), announced today a successful completion of a transaction for acquiring 100% of VeloBank shares from the Bank Guarantee Fund. All necessary approvals from relevant supervisory bodies have been obtained. The transaction finalizes an open, transparent, non-discriminatory, and competitive sales process led by the Bank Guarantee Fund since 2023.
The signing of the agreement presents new development opportunities for VeloBank across all business lines, as a result of its recapitalization by the new owners in the amount of PLN 687 million, and the removal of the bridging bank status and related restrictions imposed by the European Commission.
The sale of the Bank will not affect the situation of clients or their service. The funds gathered in VeloBank will continue to be protected by the Bank Guarantee Fund under the same conditions as funds deposited in other banks covered by the current deposit guarantee system in Poland.
“We are very pleased to be able to invest in VeloBank and support its participation in the dynamically developing Polish banking market” commented Charles Dunlap, Senior Managing Director of Cerberus.”We are extremely proud of the bank and its talented employees, especially for their commitment to implementing innovative digital solutions and customer-oriented financial products.
“We are convinced that VeloBank has all the potential to leverage its past successes and assume the position of a leading bank serving the Polish retail and business community.”
As part of the process of taking control over the bank, a new Supervisory Board has been appointed on August 1, 2024.
The transaction will result in a strengthening of VeloBank’s financial and operational foundations, enabling its dynamic development in the coming years based on previous results achieved across all business lines. Over the last two years, several strategic initiatives have been undertaken with the goal of offering customers effective digital service processes and expanding the product offering.
VeloBank, a universal bank, offers modern financial solutions for individual customers, private banking, SMEs, large enterprises and corporations, as well as institutions in the public sector. It ranks among the ten largest banks in Poland. VeloBank’s strategy is based on the use of modern technologies, including generative artificial intelligence solutions, to increase the convenience of both customers and bank employees.
Cerberus, founded in 1992, is a world leader in alternative investments, with assets worth about $65 billion in complementary credit, private equity and real estate strategies. The EBRD, established to support the private sector following the collapse of communism in Eastern Europe, operates in 38 countries and is the largest investor in many of these countries, as well as attracting large direct foreign investments. The IFC is the largest global development institution focused on developing the private sector on emerging markets.
Source: https://ceo.com.pl/finalizacja-przejecia-velobanku-przez-cerberus-ebor-i-ifc-16537
