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Moscow, August 5, 2005
— The International Finance Corporation (IFC), the private sector financing arm of the World Bank Group, recently made a US$6 million equity investment in DeltaCredit Bank, the first dedicated mortgage bank in Russia, specializing in the origination and servicing of residential mortgages in Moscow, St. Petersburg and other regions of the Russian Federation.
This equity investment represents IFC’s continued commitment to and vote of confidence in DeltaCredit Bank as a leading private-sector institution in providing mortgage loans to Russian citizens. DeltaCredit Bank has established a successful track record in originating over US$200 mln. in quality mortgage loans throughout Russia since it started its mortgage lending operations in 2001. In addition to the recent equity investment, IFC has provided approximately US$50 million in debt financing to DeltaCredit Bank since 2002.
“Delta Private Equity Partners has and continues to be one of IFC’s long-standing investment partners in Russia”, commented Mr. Edward Nassim, IFC Director for Central and Eastern Europe. “IFC is very pleased to participate in the equity of DeltaCredit Bank, an institution that has been at the forefront of the primary mortgage market development and promotion of international mortgage lending “best practices” in Russia. We believe that IFC’s investment will provide the Bank with additional capital support as it continues to broaden its regional presence in the mortgage lending markets in Russia”, added Mr. Nassim.
Patricia M. Cloherty, Chairman and CEO of Delta Private Equity Partners notes, “An equity investment from such a prominent institution as IFC is evidence of the success that DeltaCredit has attained thus far and the potential that exists for future growth. IFC’s investment will support DeltaCredit’s efforts to provide mortgage lending of the highest quality to families in Russia…”
"The equity investment from IFC is yet another confirmation from one the Bank's longest-standing partners that DeltaCredit's fundamental elements of success - its business model focused on high quality mortgage lending, service level leadership, and controlled growth - are producing the results that are able to attract the most demanding international investors," commented Igor Kouzin, Chairman and CEO of DeltaCredit Bank
Delta Private Equity Partners
is a leading private equity manager dedicated to developing and funding emerging growth companies in Russia that possess the potential to become market leaders. It has invested about $300 million in 44 Russian companies through The U.S. Russia Investment Fund established in 1994 and through Delta Russia Fund, a successor private fund set up in 2004. More information is available on
www.dpep.com.
DeltaCredit Bank
, founded by “The US Russia Investment Fund”, is the leading domestic mortgage lender in the Russian Federation. It has developed innovative mortgage products aimed at satisfying diverse housing needs of the Russian people. The volume of mortgage loans originated by the Bank in Russia exceeds $200 million. To learn more about DeltaCredit Bank and its mortgage programs visit the bank’s web site at
www.deltacredit.ru
International Finance Corporation (
www.ifc.org
).
Russia joined IFC in 1993. Since then, IFC has committed $2.4 billion in the country, including $245 million in syndicated loans, to finance more than 100 projects across a variety of sectors. IFC’s portfolio in Russia stands at approximately $1.7 billion. Currently, Russia is the largest country exposure in IFC’s global portfolio. IFC’s investments spread across the country’s most important sectors including banking, leasing, housing finance, infrastructure, mining, agribusiness, pulp and paper, construction materials, oil and gas, telecommunications, information technologies, retail, and health care.
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 FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
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