|
Moscow, July 21, 2006
—Today, the International Finance Corporation, the private sector arm of the World Bank Group, signed agreement to provide a RUB 150,000,000 (equivalent to approximately $5.6 million) subordinated loan to Primsotsbank, a medium-sized bank based in Vladivostok and specializing in retail and SME lending. It is IFC’s first subordinated loan to a Russian bank which is denominated in Rubles. The loan may be converted into the Bank’s equity at a later stage.
IFC’s investment will strengthen Primsotsbank’s capital base, help the Bank improve its position in the local market and expand to neighboring markets, and thus support development of the banking market in Russia’s Far East. IFC has also approved an equity investment and a senior loan to the Bank, which may be committed later in 2006.
Edward Nassim, IFC’s Regional Vice President, commented: “Locally-owned financial institutions are the focus of IFC’s strategy in the Russian financial markets. We welcome Primsotsbank’s commitment to growth and expansion of retail and SME lending operations in the Far East region where banking services are still underdeveloped. We look forward to further cooperation with the Bank.”
Dmitri Yarovoi, Chairman of the Board of Primsotsbank, said: “We highly appreciate the level of confidence in our bank demonstrated by such a well-established institution as IFC. We see this subordinated loan agreement as a sign of our success and great potential for further development.”
About IFC
The International Finance Corporation
is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment in developing and transition 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 FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. For more information, visit
www.ifc.org
.
IFC manages environmental and social risks associated with the projects it finances through standards that its clients companies are required to apply. In collaboration with client companies, IFC looks at business opportunities arising from the protection of the environment and from social development. IFC also explores and develops new financial products that create new business opportunities linked with the environment and social development.
IFC in Russia
Russia became a member and a shareholder of IFC in 1993. Since then IFC has invested $2.9 billion in the country, including $527 million in syndicated loans, in over 110 projects across a variety of sectors. In FY05 (July 2004–June 2005) IFC’s investments reached $832 million. IFC’s investment portfolio in Russia currently stands at $1.8 billion, making it the largest country exposure for IFC globally. IFC has invested in key sectors including banking, leasing, housing finance, infrastructure, mining, agribusiness, pulp and paper, construction materials, oil and gas, telecommunications, information technologies, retail, and health care. For more information, visit
www.ifc.org/europe
.
|
