Chisinau, Moldova, March 27, 2012
—IFC, a member of the World Bank Group, is providing a $10 million loan and mobilizing a $3 million parallel loan from the Black Sea Trade and Development Bank to Moldovan glass manufacturer Glass Container Prim (GC Prim) to help the company expand its operations and support Moldova’s economic recovery.
The transaction will help GC Prim – a key supplier of Moldova’s food and beverage sector, which accounts for 20.5 percent of the country's exports – to restructure its balance sheet and grow its business.The company, which makes flint glass bottles, is one of Moldova’s leading private sector employers and produces more than 130 million bottles annually. IFC's support follows a combined $16.3 million debt-to-equity swap by the company’s two largest shareholders, Western NIS Enterprise Fund (WNISEF) and Moldova Agroindbank.
"In this challenging environment we have taken numerous strategic measures to ensure our continued leadership," said Oleg Baban, General Director of GC Prim. "These steps have paid off, and by attracting this funding from credible international financial institutions we are now in a position to expand.”
Tomasz Telma, IFC Director for Europe and Central Asia, said, “By working with our partners we aim to increase GC Prim’s competitiveness so that it remains a significant employer and exporter.”
Natalie Jaresko, WNISEF President and Chief Executive Officer, said, “Supporting our portfolio companies in restructuring and raising additional capital is just one of the many ways we add value as a shareholder. GC Prim’s outstanding management team gives us confidence in our business strategy and in our ability to further expand Moldova’s exports in the region.”
Natalia Vrabie, President of the Management Board of Agroindbank, said, “The GC Prim glass factory is one of the biggest projects financed by Moldova Agroindbank. The success of this project is very important for the Moldovan economy, and cooperation with leading financial institutions will contribute to develop and increase GC Prim’s business. The successful partnership will also help potential investors in their decision to make investments in manufacturing and other sectors of Moldova’s economy.”
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit