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Moscow, March 07, 2008
—IFC, a member of the World Bank Group, has provided financing to URSA Bank, one of the largest regional banks in Russia, to expand access to high-quality innovative banking products and services. The financing will be used for trade finance, investment, and energy efficiency projects with small and medium enterprises in Siberia and the Ural region.
The $125 million financing package comprises a four-year, $50 million loan for IFC’s own account and a two-year $75 million syndicated loan. The bookrunners for syndicated component are IFC, Citi, and ICICI. The tenor of the syndicated loan is the longest for a private bank in Russia in 2008.
IFC also plans to provide advisory services to URSA Bank and its clients on the technical, financial, and legal aspects of energy efficiency finance, which will help improve the competitiveness of Russian small and medium enterprises by lowering energy consumption.
John McNaughton, Managing Director of URSA Bank, said, “This loan will help us serve our trade finance and SME customers for up to four years and accelerate economic expansion in Russian regions.”
Jerome Sooklal, IFC Director for Central and Eastern Europe, said, “We at IFC are excited to work with URSA on this transaction, which will channel funds to smaller businesses and energy-efficient projects in the Siberia and Ural regions. The bank’s leadership role in the area is an important asset for the success of the whole operation.”
Steven Fisher, Citi Managing Director and Corporate Bank Head for Russia and C.I.S, added, “This transaction has proved to be a very successful move for URSA Bank. The deal’s customized tenor structure and IFC’s support, coupled with our strong growth, was a successful combination to execute this transaction under challenging market conditions.
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 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 over 150 projects across a variety of sectors. IFC’s investment portfolio in Russia 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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