Washington, D.C., July 12, 2006—
The
International Finance Corporation, the private sector arm of the World Bank Group, has signed three agreements to provide €35 million ($43 equivalent) in long term funds to support the development of housing finance and energy efficiency finance products of Raiffeisen International Bank-Holding AG subsidiary banks in Bosnia and Herzegovina, Kosovo, and Serbia.
IFC loans amounting to €15 million and CHF 15.5 million respectively will enable Raiffeisen Bank d.d. Bosna i Hercegovina and Raiffeisenbank a.d. Beograd in Serbia to continue to grow their mortgage lending programs and develop innovative products such as loans for energy efficient projects in Bosnia and Herzegovina.
IFC’s loan to Raiffeisen Bank Kosovo J.S.C. in the amount of €10 million will support the bank’s small and medium size business line and the launch of its residential housing finance program. IFC’s investment is expected to have a significant developmental impact by strengthening the emerging housing finance sector in Kosovo, expanding home ownership in Bosnia and Herzegovina and Serbia, and reducing energy consumption and pollution.
Shahbaz Mavaddat, IFC’s director for Southern Europe and Central Asia said, “Working with Raiffeisen International in this new way, through its subsidiary banks in Southern Europe, we expect to broaden and deepen financial intermediation in the frontier markets of Bosnia and Herzegovina, Kosovo, and Serbia.”
IFC is keen on seeing significant development in both the primary mortgage and energy efficiency markets in Southern Europe.
“IFC is pleased to partner with the Raiffeisen Group to develop its housing finance activities in Kosovo and its energy efficiency products in the region,” said Jyrki Koskelo, IFC’s director for Global Financial Markets. “This is IFC’s first energy efficiency credit line, providing funding and product development support to a well established institution in Bosnia and Herzegovina. We believe energy efficiency finance has tremendous potential in the region and look forward to replicating this project in other countries.”
Herbert Stepic, CEO of Raiffeisen International, said, “Our comprehensive branch network makes us an ideal partner for the IFC to accomplish its mission in South Eastern Europe and are able to distribute the funds provided by the IFC to SMEs and consumers. We are glad to add three more agreements to our long-lasting and successful cooperation with the IFC.”
About Raiffeisen International
Raiffeisen International operates one of the leading banking networks in CEE with subsidiary banks and leasing companies in 16 markets. More than 10 million customers are attended through 2,700 business outlets. In eight markets, the respective Network Bank ranks among the three largest local banks. Representative offices in Lithuania and Moldova complement the Group's presence in the region. Raiffeisen International is a fully consolidated subsidiary of Raiffeisen Zentralbank Österreich AG (RZB), which owns 70 per cent of the common stock. The remaining 30 per cent is free float, the shares are traded on the Vienna Stock Exchange. RZB is a leading corporate and investment bank in Austria and the central institution of the Austrian Raiffeisen Banking Group, the country's largest banking group. Raiffeisen International's balance-sheet total amounted to € 41.9 billion at the end of the first quarter 2006. Consolidated profit (after minorities) increased by 34 per cent to € 124 million, compared with the first quarter 2005.
About IFC
The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications. For more information, visit
www.ifc.org
