Moscow, Russia; Washington D.C., USA; and Istanbul, Turkey, February 21, 2003
—The International Finance Corporation (IFC), the private sector financing arm of the World Bank Group, is lending $10 million to OOO Ruscam, Russia's highest quality supplier of glass bottles to the beverage industry.
The seven year loan will finance installation of a second furnace, which will provide Ruscam with an additional 315 tons of glass making capacity per day. IFC financed the installation of Ruscam’s first furnace in 2002 with a loan of $13 million.
“In June of 2002, Ruscam fired its first furnace with glass making capacity of 275 tons per day. The quick follow-on investment in a second furnace underscores our commitment to the Russian market, which we see as of strategic importance to the Sise ve Cam Group (Sisecam). Ruscam has been very successful in 2002, achieving a turnover of $9 million and selling 130 million bottles since the first furnace was fired in May,” said Mr. Teoman Yenigün, Chief Executive Officer, Sisecam Packaging Division.
“Continued support from IFC was important for Sisecam since we have a longstanding relationship with the IFC and believed that the IFC could deliver a speedy investment approval and commitment for this project," he continued."Despite continuing challenges in the local administrative and legal landscapes, Ruscam and IFC together delivered the relatively complex project financing in just over four months from appraisal to commitment."
“Ruscam’s world-class bottle production technology will raise the quality of Russian-made bottles to international standards. The investment will, among other benefits, enable Ruscam to satisfy bottlers’ demand for bottles manufactured to beverage companies’ proprietary designs, allowing them to differentiate the premium products from standard-quality products,” concluded Mr. Yenigün.
“IFC’s investment in Ruscam reflects our continued commitment to supporting Russia's private sector and follows the 17 projects IFC has already supported in the last 12 months, investing $212 million and raising additional $43 million in syndications," said Ms. Sujata Lamba, Manager, IFC Turkey.
Ruscam is located in the town of Gorokhovets in the Vladimir region, about 335 miles east of Moscow and just west of Nizhny Novgorod. Ruscam is a subsidiary of Anadolu Cam Sanayii A.S., the glass packaging division of Sisecam, Turkey’s leading glass producer.
Russia joined IFC in 1993. Since then IFC has invested over $720 million of its own resources to finance 64 projects across a variety of sectors. IFC significantly increased its investment program in Russia in the last fiscal year (July 1, 2001 – June 30, 2002), investing $315 million in 20 projects worth $741 million. The rise of IFC activity reflects the improving investment climate in Russia, greater opportunities in an increasingly broad range of sectors, and a stronger foreign investor interest. IFC is optimistic that these trends will continue, as Russia becomes a key country in IFC’s global strategy.
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. Since its founding in 1956 through FY02, IFC has committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY02 was $15.1 billion for its own account and $6.5 billion held for participants in loan syndications.
