Follow Us on Social Media!
Moscow, January 31, 2008
— IFC, a member of the World Bank Group, is helping Russia’s Sodrugestvo Group, the largest manufacturer and distributor of soybean meal and other animal nutrition products in the CIS countries, expand its operations and improve its port facilities.
IFC’s financing of $50 million in equity and $50 million in long-term debt will help Sodrugestvo complete a specialized agricultural commodities port as well as expand its production of animal feed by building and operating soybean and rapeseed processing plants in the Kaliningrad region. As a partner and shareholder, IFC will also advise Sodrugestvo on commercial, technical, environmental, and food safety issues and help the company implement best practices in corporate governance.
The new port will alleviate infrastructure bottlenecks at commercial ports that handle imported agricultural products and increase access to quality port services for other Russian agricultural commodity traders. With the new processing plants, Sodrugestvo will increase the supply of quality animal nutrition products in Russia to support the country’s rapidly expanding livestock industry.
“We are happy to see IFC as our new shareholder and financier. This strategic partnership is a recognition of our company and growth strategy. It will add momentum to our development and support our commitment to best international standards of doing business” – said Alexander Lutsenko, Chairman of the Board of Directors and CEO of Sodrugestvo Group.
“IFC is proud to partner with Sodrugestvo. The company’s expanded operations generate 600 new jobs in the Kaliningrad region, create a stable demand for locally grown rapeseed, and support Russia’s dynamically growing poultry and pork sectors. Sodrugestvo’s commitment to local and international environmental, food safety, and corporate governance standards will set a strong example to the rest of the industry,” said Oscar Chemerinski, Director of IFC’s Agribusiness Department.
The Sodrugestvo group
is the largest Russian and the CIS livestock feed ingredients manufacturer and supplier. The company owns and operates a deep-water agricultural commodity port in the Kaliningrad Region and has a network of subsidiaries with custom terminals and storage facilities in Russia, Belarus, Kazakhstan and Ukraine. The company also owns and operates a premix factory in Denmark and, jointly with Bunge, owns and operates a terminal in Liepaja, Latvia.
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 syndications 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 stands at $2 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, please visit www.ifc.org/europe.
Receive news and updates about IFC