Moscow, January 31, 2008 — IFC,
a member of the World Bank Group, is helping Russia’s Sodrugestvo Group,
the largest manufacturer and distributor of soybean meal and other animal
nutrition products in the CIS countries, expand its operations and improve
its port facilities.
IFC’s financing of $50 million in equity and $50 million in long-term
debt will help Sodrugestvo complete a specialized agricultural commodities
port as well as expand its production of animal feed by building and operating
soybean and rapeseed processing plants in the Kaliningrad region. As a
partner and shareholder, IFC will also advise Sodrugestvo on commercial,
technical, environmental, and food safety issues and help the company implement
best practices in corporate governance.
The new port will alleviate infrastructure bottlenecks at commercial ports
that handle imported agricultural products and increase access to quality
port services for other Russian agricultural commodity traders. With the
new processing plants, Sodrugestvo will increase the supply of quality
animal nutrition products in Russia to support the country’s rapidly expanding
“We are happy to see IFC as our new shareholder and financier. This
strategic partnership is a recognition of our company and growth strategy.
It will add momentum to our development and support our commitment to best
international standards of doing business” – said Alexander Lutsenko,
Chairman of the Board of Directors and CEO of Sodrugestvo Group.
“IFC is proud to partner with Sodrugestvo. The company’s expanded operations
generate 600 new jobs in the Kaliningrad region, create a stable demand
for locally grown rapeseed, and support Russia’s dynamically growing poultry
and pork sectors. Sodrugestvo’s commitment to local and international
environmental, food safety, and corporate governance standards will set
a strong example to the rest of the industry,” said Oscar Chemerinski,
Director of IFC’s Agribusiness Department.
The Sodrugestvo group is the
largest Russian and the CIS livestock feed ingredients manufacturer and
supplier. The company owns and operates a deep-water agricultural commodity
port in the Kaliningrad Region and has a network of subsidiaries with custom
terminals and storage facilities in Russia, Belarus, Kazakhstan and Ukraine.
The company also owns and operates a premix factory in Denmark and, jointly
with Bunge, owns and operates a terminal in Liepaja, Latvia.
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 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,
IFC in Russia
Russia became a member and shareholder of IFC in 1993. IFC’s investment
portfolio in the country stands at $2 billion, making it the largest country
exposure for IFC globally. IFC has invested in key sectors including
agribusiness, banking, construction materials, health care, housing finance,
information technologies, infrastructure, leasing, mining, oil and gas,
pulp and paper, retail, and telecommunications. For more information, please