Kyiv, Ukraine, Oct 7, 2010
—IFC, a member of the World Bank Group, is helping retail chain Nova Liniya expand operations in Ukraine to boost local production and support retail development in underserved local markets.
IFC’s $22 million loan will support Nova Liniya’s expansion program, which includes building five new do-it-yourself stores throughout Ukraine. The investment in Nova Liniya, will help the company increase its number of stores to 19, expand access to affordable products, and create jobs.
“We are pleased to have IFC as a long-term partner,” said Oleg Shandar, Chairman of Nova Liniya. “Thanks to IFC’s support over the years, our company has grown, our range of home-improvement goods has increased, and our new stores will provide local consumers with more efficient distribution channels.”
The project will be implemented over two-and-a-half years, and Nova Liniya’s new stores will be located in Bucha, Feodosia, Kyiv, Odessa, and Sevastopol. The project will generate employment both directly and indirectly, and it will boost production and lower dependence on imports.
Elena Voloshina, IFC Country Representative for Ukraine, said, “IFC’s investment in Nova Liniya is in line with our strategy to help clients by providing long-term financing that is not easily available in Ukraine following the financial crisis. Nova Liniya’s expansion program will help make the retail sector more competitive through developing the supply chain."
Dragon Capital, one of Nova Liniya’s major shareholders and a leading Ukrainian investment bank, acted as the sole financial adviser for Nova Liniya on the transaction.
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
.
