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Moscow, May 29, 2008
—IFC, a member of the World Bank Group, is supporting Belgrankorm Group, a leading crop and meat producer in Russia, to increase the company’s production capacity and introduce best practices in corporate governance and environmental and social sustainability.
IFC’s $50 million in equity will help Belgrankorm modernize and expand its poultry, pig, dairy farms, and processing facilities in the Belgorod region. This will help the company double its meat and milk production and purchase new farm machinery to cultivate more land to boost grain production. IFC’s investment will also support a new poultry project and help build a feedmill in the Veliky Novgorod region. IFC also will provide the company with $30 million long-term debt.
As a partner and shareholder, IFC will advise Belgrankorm on corporate governance, international financial reporting standards, and environmental and social management systems. IFC will also help the company improve livestock performance by introducing best practices in veterinary, nutrition, and livestock management.
“We welcome IFC as a new shareholder and financier. This strategic partnership serves as recognition of our company and growth strategy. It will spur our development and support our commitment to implementing international standards of doing business,” said Alexander Orlov, owner of Belgrankorm.
“The agribusiness sector is a strategic priority for IFC. We are delighted to work in partnership with Belgrankorm and help expand the company's production capacity by using modern technologies that maximize efficiency and apply highest environmental and food safety standards,” said Oscar Chemerinski, IFC Director for Agribusiness.
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 people should 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
.
Russia became a member and a shareholder of IFC in 1993. Since then IFC has invested over $3.6 billion in the country, including $527 million in syndicated loans, in more than 150 projects across a variety of sectors. IFC’s investment portfolio in the country currently stands at $2.24 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
.
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