Moscow, Russia, October 1, 2010
—IFC, a member of the World Bank Group, is helping Transcapitalbank, a midsize Russian bank and leader in trade finance, hedge currency and interest-rate risks to make the bank’s operations more sustainable and expand its local-currency lending program.
IFC and Transcapitalbank have executed the first $30 million local-currency swap transaction under an agreement signed in June 2010. The bank hedged its exposure to U.S.-dollar borrowings, allowing it to lend in Russian rubles to its small and medium client companies.
“Today, Russian companies prefer taking loans in rubles to avoid the risks of foreign currency borrowing,” said Olga Gryadovaya, Chairperson of Transcapitalbank. “We are grateful to IFC for its support and pleased to expand our cooperation into this new area.”
Snezana Stoilikovic, IFC Director for Eastern Europe and Central Asia, said, “We place great importance on helping our clients improve their sustainability and mitigate risks, including currency and exchange-rate risks that remain significant in Europe and Central Asia. We are pleased to finalize our first swap transaction with Transcapitalbank, helping them expand access to local-currency financing for small businesses in the region.”
Transcapitalbank became IFC client in May 2009, by joining IFC’s Global Trade Finance Program. In only a year, the bank has become one of the program’s most active participants in Europe and Central Asia.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
.
About Transcapitalbank
Transcapitalbank is one of the most dynamically developing banks in Russia. It ranks 15
th
among the country’s most stable commercial financial institutions and ranks among Russia’s top-10 commercial banks in trade and structured finance. Transcapitalbank has been providing banking services for individuals and legal entities since 1992. It mainly focuses on corporate banking, supporting small and medium businesses, including microlending in Russian regions. It also provides a wide range of services for individuals. For more information, visit
www.transcapital.com
.
