Titanium deposits as collateral: what lies behind Prominvestbank’s loans
19 February 16:54
The Deposit Guarantee Fund has announced a new auction for the sale of claims under two loan agreements of the liquidated Prominvestbank, concluded in 2011 and 2013. This was reported by NADRA.INFO, according to "Komersant Ukrainian".
These are debts secured by production assets and collateral related to the mining business of the Velta group of companies, which is controlled by businessman Andriy Brodsky.
The auction is scheduled for March 2, 2026.
How the auction will work
The starting price of the lot is about UAH 8.95 billion. The sale will be conducted according to the “Dutch auction” principle: the price will automatically decrease by 1% per step during the trading session.
Theoretically, the price could fall by 90%, meaning the asset could be sold for approximately UAH 895 million — one-tenth of the starting price.
To participate in the auction, you must:
- meet the qualification requirements,
- pay a deposit of UAH 89.5 million.
This is the fourth attempt to sell these debts. Previous auctions did not take place due to a lack of participants.
What exactly is being sold
The fund is not selling the assets directly, but rather the rights to claim on the loans. This means that the buyer will be able to collect the debt from the borrower and sell the collateralized property.
As of 2022, VKF Velta LLC controlled two titanium ore deposits:
- Birzulivske — an enrichment plant operates on its basis,
- Likarivske — no mining is currently taking place there.
Thus, the debts are secured by real mining assets, which may increase their investment attractiveness — but at the same time complicate their valuation.
Agreement with a foreign investor
In January 2026, the Australian company European Lithium Limited announced the conclusion of an agreement to acquire 100% of the shares of Velta Holding, a structure that owns titanium assets in Ukraine.
Earlier, Andriy Brodsky stated that after the deal was completed, Velta planned to repay its debts in full.
Why the previous auction did not take place
Market analysts point to several possible reasons:
- high starting price,
- complex collateral structure,
- legal risks,
- uncertainty about the future of assets in wartime.
The Dutch auction model is designed to increase the likelihood of selling the asset, even at a significant discount.
What this means for the state
For the Guarantee Fund, a successful sale means the return of funds to the system and partial coverage of the losses of depositors of the liquidated bank.
For a potential investor, it is an opportunity to gain control over debt claims to strategic titanium assets at a significantly lower price.
And for Velta, it is an additional factor of pressure on the eve of a possible change of ownership.
