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Moscow —
IFC, a member of the World bank Group, is helping Russia’s MDM Bank offer a new and specialized loan product for small and medium enterprises in Russia. The product, MDM-Energy, is designed to finance energy efficient projects for smaller businesses that want to modernize equipment and lower energy costs.
The MDM-Energy loan product will provide financing to SMEs with special terms, as well as expert consultations to help identify and evaluate potential projects. Independent technical experts will work with the bank to estimate the potential for, and impact of, energy savings for smaller businesses. If necessary, the consultants will recommend the most efficient technical solutions or conduct an energy audit.
Andrei Kuznetsov, Head of the Small Business Lending Department at MDM Bank, said, “MDM-Energy is indeed a unique product on the Russian market. It will enable our clients to receive additional financing and independent consulting. We are able to provide such opportunities thanks to our cooperation with IFC.”
Miles Stump, Manager for the IFC Russia Sustainable Energy Finance Program, added, “Supporting projects that deter climate change is one of IFC’s strategic priorities. We are pleased that the new financial product will be available in over 60 cities where MDM Bank works. Companies will be able to finance energy efficiency projects that lower costs, increase competitiveness, and reduce greenhouse gas emissions.”
MDM-Energy is the 10
th
credit product offered by MDM Bank to support small and medium businesses. IFC and MDM Bank signed the cooperation agreement for financing energy efficiency projects in July 2007. IFC provided the bank with a credit line of $20 million to develop this new product.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit
www.ifc.org
.
IFC in Russia
Russia became a member and shareholder of IFC in 1993. IFC’s investment portfolio in the country currently stands at $2.48 billion, making it the largest country exposure for IFC globally. IFC has invested in key sectors including agribusiness, banking, construction materials, health care, housing finance, information technologies, infrastructure, leasing, mining, oil and gas, pulp and paper, retail, and telecommunications. For more information, visit
www.ifc.org/europe
.
The IFC Russia Sustainable Energy Finance Program is designed to stimulate investment in energy efficiency by helping financial institutions build energy efficiency finance services. The program consists of financing and advisory services. IFC provides credit lines to banks and leasing companies that are used exclusively for financing energy efficiency projects. IFC supports these financial institutions and their clients by providing consultations on technical, financial, and legal issues, as well as holding seminars on financing energy efficiency. The program is supported by the Global Environment Facility, Denmark, Finland, the German state of Saxony, and IFC.
About MDM Bank
MDM Bank was founded in December 1993 and holds a general banking license issued by the Central Bank of Russia. It is a modern, universal financial institution that offers clients a full range of services. Today, the bank is one of the most profitable in Russia and has one of the highest credit ratings among privately owned Russian banks: Standard & Poor’s (BB, stable), Fitch Ratings (BB-, positive), and Moody’s (Ba1). MDM Bank is the only Russian financial organization that has been given a public corporate governance rating by Standard & Poor’s (6+). In 2007, MDM Bank received the Corporate Governance Editors Award from
Global Finance
, which also named it Russia’s Best Foreign Exchange Bank.
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