Istanbul, February 10, 2014
—IFC, a member of the World Bank Group, will invest up to €150 million in Raiffeisen Bank International (RBI) with financing channeled to the bank’s subsidiaries in Central and Eastern Europe to promote economic recovery and growth in the region.
RBI subsidiaries in Bosnia and Herzegovina, Kosovo, Poland, and Russia will benefit from IFC’s investment in RBI’s capital increase. IFC’s final investment amount will be confirmed when the transaction closes, and is expected to contribute to improved access to finance and stronger private enterprise in the region.
“IFC’s participation in our capital increase is a strong signal of confidence in our bank and underlines IFC’s commitment to supporting economic growth and recovery in Central and Eastern Europe,” said Karl Sevelda, CEO of RBI.
Countries in emerging markets were hit hard by the global financial and Eurozone crises, and were affected by some Western European banks shedding assets. IFC’s financial markets strategy in Eastern Europe is driven by the importance of stable banks in the region and is focused on delivering targeted investment and advisory services to support economic growth and job creation.
Edward Strawderman, IFC Associate Director, Financial Institutions Group, Europe and Central Asia, said: “IFC’s investment in our long-term partner, Raiffeisen Bank International, will support the bank’s subsidiaries and boost access to finance across four markets in emerging Europe.”
Since 2008, IFC has invested about $26 billion in Europe and Central Asia, including over $7 billion mobilized from partner banks. About $13 billion supported banks and financial markets, of which about $3 billion was mobilized.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our new investment commitments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
.
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