Kyiv, Ukraine, June 2, 2008
—IFC, a member of the World Bank Group, has agreed to support a joint venture project between Asnova, a privately owned Ukrainian company, and Raven Russia Limited, a London-listed real estate investment company, to expand and modernize a warehousing facility in the outskirts of Kyiv, Ukraine. The investment will help relieve a shortage of modern warehousing services and promote private sector development.
Rapid growth in Ukraine’s retail sector and increasing consumer demand have led to the warehousing shortage. As a result, supply chains remain inefficient and economies of scale are not used fully. This translates into higher costs for producers, suppliers, retailers, and consumers.
IFC will provide a $28.5 million loan to Logistics Centre Kalynivka, the project formed by Asnova and Raven Russia. The funds will help build 85,000 square meters of new warehouses and refurbish 15,000 square meters of existing buildings—all with state-of-the-art infrastructure. IFC will also mobilize $24.7 million from participating banks.
"Our long-term cooperation with IFC has added value to our new joint venture with Raven Russia and helped us obtain financial support for our ambitious investment plans. Together, we will launch the up-to-date logistics center, which will create new jobs in the region, contribute substantial tax payments to local government, and demonstrate that Ukraine is attractive for prominent foreign investors," said Urfan Guliyev, CEO of Ashova Holding.
“This is Raven Russia's first project with IFC, and we are keen to develop a strong relationship as our company expands into Ukrainian and Russian cities,” commented Richard Jewson, Chairman of Raven Russia.
“The agreement with Raven represents an important and strategic partnership for us. It is also another step in our long-term relationship with Asnova. This effort will help improve local supply chains and develop the private sector,” said Dimitris Tsitsiragos, IFC Director for Global Manufacturing and Services.
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
.
