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Chisinau, April 21, 2008
– IFC, a member of the World Bank Group, has entered into an agreement to provide financing to Bostavan Wineries Limited, a leading wine producer in Moldova, benefiting local farmers and rural communities. IFC’s $10 million in debt and equity will support the company’s investment program to upgrade product quality and raise safety standards, diversify its export markets, and restructure its balance sheet. This investment builds on a successful partnership with an IFC client, Detroit Investments, which also became a shareholder in Bostavan earlier this year.
“IFC’s support will ensure the sustainability of income for the 1,500 farmers who supply Bostavan Wineries. It will bring significant benefits to rural communities where the company operates, as well as its employees,” said Vipul Prakash, Manager of IFC’s Agribusiness Department. Prakash and Ana Maria Mihaescu, IFC Chief of Mission, noted the importance of agribusiness for Moldova. IFC’s investment will support the revival of a midsize private company and have a strong demonstration effect on the sector.
Victor Bostan, Chairman and CEO of Bostavan Wineries, said, “The financing from IFC is very important. It will strengthen our financial position and enable us to develop into a top-quality, competitive regional producer.”
Nicholas Henderson-Stewart, CEO of Detroit Investments, added, “We are pleased to have IFC’s support as a co-investor in our first investment in Moldova. We look forward to further cooperation and to IFC’s long-term support in future projects.”
About Bostavan Wineries
Bostavan Wineries Limited, based in Chisinau, Moldova, is mainly engaged in the production, distribution, and export of wines. It has three wineries in Moldova and also a smaller winery in Romania. Its products are exported to over 25 countries.
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
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