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IFC Helps NBD Bank Support Small Businesses in Company Towns in Central Russia


In Moscow:
Nezhdana Bukova
Phone: +7 985 411 7555
E-mail:
NBukova@ifc.org


Nizhni Novgorod, Russia, April 4, 2012—IFC, a member of the World Bank Group, is providing Russia’s NBD Bank a 5-year, 300 million ruble loan ($10 million equivalent) to help the bank finance small businesses in small and single-company towns of central Russia to support economic development and employment.

This loan will enable IFC’s long-term partner NBD Bank to launch a new line of financial services and products for small companies to help them invest in production assets and expand employment. The new source of financing will be available where NBD Bank operates in the regions of Nizhni Novgorod, Kirov, Penza and Ivanov Oblasts, Chuvash Republic and the Republic of Mariy El.


“We developed this special program to support small businesses and thus contribute to economic development and middle class growth in small and single-company towns,” said Alexander Sharonov, Chairman of the NBD Bank’s Management Board. “We are confident that businesses with long-term vision have to be socially responsible and take into account the social effects of their operations.”


Tomasz Telma, IFC Director for Europe and Central Asia, said, “Supporting small and medium companies is one of our main priorities in Russia. NBD Bank’s initiative contributes to this goal, creating opportunities for economic development and new jobs in where they are needed most – in the small and single-company towns of central Russia.”

This loan agreement is part of IFC’s work in Russia to support private sector development and encourage economic growth. The country became a member and shareholder of IFC in 1993. Since then, IFC has invested nearly $6 billion in Russia, including $1.5 billion in syndicated loans, and is involved in 250 projects across a variety of sectors. IFC’s investment portfolio in Russia stands at $2.54 billion, the third-largest country exposure for IFC globally.

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, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit www.ifc.org.

About NBD Bank
Established in 1992, NBD Bank provides a broad range of financial products to people and small and medium companies through its network of 23 branches in six Russian regions, namely, Nizhni Novgorod, Kirov, Penza and Ivanov Oblasts, Chuvash Republic and the Republic of Mariy El. For more information, visit www.nbdbank.ru.

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