|
Moscow/Washington, March 3, 2008
— IFC, a member of the World Bank Group, has agreed to invest in KuibyshevAzot, one of Russia’s leading chemicals manufacturers, helping to create new jobs by diversifying Russia’s petrochemical industry to include finished products.
IFC’s $20 million equity investment will help increase Russia’s value-added exports and improve access to long-term financing that is critical for the company’s future growth.
“IFC is an important partner in helping us strengthen competitiveness through product diversification,” said Victor Gerasimenko, President of KuibyshevAzot. “With IFC’s support we will also be able to expand into higher-margin products while lowering our costs by modernizing our production facilities.”
The investment supports a company operating outside Russia’s economic hubs in the Samara region, 860 kilometers southeast of Moscow on the Volga River. It is expected to boost the regional economy by creating jobs and business opportunities for enterprises in Samara and other regions.
“IFC’s equity investment in KuibyshevAzot continues a relationship which dates back to 2003,” said Somit Varma, IFC Director for Oil, Gas, Mining, and Chemicals. ”The company first participated in IFC’s Russia Corporate Governance Project, followed by long-term debt financing in 2005. We now look forward to growing this relationship as an equity investor.”
As part of its corporate governance work, IFC has trained Russian companies and advised managers on internationally accepted practices. IFC has also helped improve corporate governance regulations at the national level in Russia.
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 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
.
|
