WASHINGTON, D.C., November 25, 1998 — The International Finance Corporation will help develop the retail sector in Russia through an investment in three greenfield hypermarkets with integrated shopping malls in suburban Moscow.
IFC agreed to provide OOO Ramenka with a US$30.5 million loan for construction and operation of the three shopping developments which will operate under the name "Ramstore."
OOO Ramenka is sponsored by three Turkish entities, ENKA Insaat ve Sanayi A.S. ("Enka"), which, together with its German affiliate, "EnTrade," owns 50 percent of the venture; MIGROS Turk T.A.S. ("Migros"), which owns 30 percent; and RAM Dis Ticaret A.S. ("Ram"), owning 20 percent. Ram and Migros are members of the Koc Group. The sponsors bring a strong combination of expertise to the project, including experience with construction and property leasing in Moscow, modern retailing know-how and Russian trade experience.
Mr. Rahmi Koc, Chairman of Koc Holding, Mr. Sarik Tara, Chairman of Enka Holding, and Mr. Edward Nassim, IFC Director for that part of Europe, are to sign the loan agreement Thursday, Nov. 26 at the opening of Ramenka's second store in Moscow.
The investment is a signal of IFC's continued commitment to developing the private sector in the Russian Federation despite current economic challenges, Mr. Nassim said. Ramenka will create jobs, support Russia's transition to a market economy by supplying high quality, low-priced goods to middle and lower income customers, and demonstrate effective, large-scale retail management which can serve as a model for future retailers in Russia.
IFC, part of the World Bank Group, fosters economic growth in emerging markets by financing private sector investments, mobilizing capital in the international financial markets, and providing technical assistance and advice to governments and businesses.
