IFC Helps Russia’s Transcapitalbank Expand Small Business Financing

Moscow, Russian Federation, May 16, 2013—IFC, a member of the World Bank Group, will help Transcapitalbank diversify its funding base and expand access to finance for small and medium enterprises in Russia.

While the financial crisis continues to keep many foreign investors away from the Russian economy, IFC facilitated a €116.5 million loan by mobilizing funds from international financial markets. Transcapitalbank will use the loan to support the foreign trade transactions of its clients—small businesses located in Russian regions—and in doing so contribute to the growth and diversification of local economies.

“We are pleased with another successful transaction for Transcapitalbank in international capital markets. Despite a somewhat volatile climate, this result was achieved due to strong fundamentals of the bank and our long-standing history as a reliable partner in international markets,” said Evgeni Ivanovski, Vice Chairman of Transcapitalbank.

The transaction is part of the IFC A/B financing package, which consists of $18.2 million (€14.5 million) to support the bank's energy efficiency finance program and a €116.5 million syndicated loan from a consortium of 15 commercial banks.

“IFC's strategic role at this time is to facilitate access to international financial markets for strong, privately-owned Russian banks, and thus expand funding options for Russia’s small and medium enterprises, particularly in the regions,” said Tomasz Telma, IFC Director for Europe and Central Asia.

Commerzbank AG, VTB Bank (Deutschland) AG,  Standard Chartered Bank, and Raiffeisen Bank International AG were all named as mandated lead arrangers and book-runners in the transaction. Amsterdam Trade Bank, Credit Europe Bank and Isbank AG were named as lead arrangers, while Intesa Sanpaolo S.p.A. - London Branch was named co-arranger. AKA Ausfuhrkredit-Gesellschaft m.b.H., GarantiBank International, Oberbank AG, UBI Banca, Demir-Halk Bank (Nederland) N.V., Banque de Commerce et de Placements and Monte Paschi Banque were each named manager.

Russia became an IFC member and shareholder in 1993. Since then, IFC has invested more than $10 billion in the country, including $3.2 billion in syndicated loans, and has been involved in 270 projects across a variety of sectors. IFC’s investment portfolio in Russia stands at $2.3 billion.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org.

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About Transcapitalbank
Transcapitalbank is a universal bank, providing a wide range of banking services for individuals and legal entities since 1992. The Bank positions itself as a regional bank and its network comprises 78 outlets, located in 18 regions of the Russian Federation. Presently, Transcapitalbank ranks among the top 50 Russian banks in terms of assets and total equity. Its customer base consists of over 33,700 corporate clients and more than 246,400 retail ones. For more information, visit www.transcapital.com.