Moscow, Russia, February 11, 2004
—The International Finance Corporation (IFC), the private sector financing arm of the World Bank Group, is lending $17.5 million to OOO Ruscam (“Ruscam”), Gorokhovets, Russia's highest quality producer of glass bottles. This is IFC’s third loan to Ruscam following a total of $23 million financing for Ruscam's first and second furnaces.
IFC’s long-term $17.5 million loan will finance the installation of a third furnace and four bottle-forming lines that will increase Ruscam’s production capacity to 975 tons of glass per day and secure its leading position in the Russian glass bottle market. Ruscam is a subsidiary of Anadolu Cam Sanayii A.S., the glass packaging division of Sisecam, Turkey's leading glass producer.
"Our third investment in Ruscam’s glass plant in Gorokhovets underscores our commitment to the Russian market, which we see as of strategic importance to the Sise ve Cam Group (Sisecam)," said Mr. Teoman Yenigün, Executive Vice President of Sisecam’s Glass Packaging Division, at the signing of the investment agreement today. "Continued support from IFC has been important to Sisecam in building a strong presence in the Russian glass container market.”
"IFC's third investment in Ruscam reflects our strategy of building long-term partnerships with our clients in the Russian manufacturing sector. We believe that IFC’s third loan will help Ruscam strengthen its position on the growing glass container market in Russia and benefit the Russian beverage industry by increasing the availability of high quality and proprietary bottles in the market," said Richard Ranken, Director of IFC’s Global Manufacturing and Services Department.
The mission of IFC is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY03 was $16.7 billion for its own account and $6.6 billion held for participants in loan syndications.
Russia joined IFC in 1993. Since then IFC has invested over $1.3 billion to finance nearly 70 projects across a variety of sectors. IFC significantly increased its investment program in Russia in the last two years, investing $217 million in FY02 (July 1, 2001 – June 30, 2002) and nearly $500 million this fiscal year. IFC’s increased activity reflects the improving investment climate in Russia, greater opportunities in an increasingly broad range of sectors, and stronger foreign investor interest.
