Moscow, Russia, March 14, 2011—IFC,
a member of the World Bank Group, today announced that the Eurasian Development
Bank became the tenth development finance institution to adopt IFC’s Master
Cooperation Agreement, which makes it easier for lenders to co-finance
projects with IFC in emerging markets.
The agreement standardizes steps that lenders take when joining IFC to
co-finance projects, increasing efficiencies and thereby cutting costs
to borrowers and lenders throughout the life of a loan. IFC created the
agreement in response to calls by G20 nations for increased collaboration
among international financial institutions to help meet private sector
financing shortfalls during the global financial crisis.
“IFC and the Eurasian Development Bank share a mission of supporting economic
development and cross-country economic ties in the region,” said Snezana
Stoiljkovic, IFC Director for Eastern Europe and Central Asia, at a signing
ceremony. “Global and regional financial institutions need to work together
to make a real difference, and this agreement will allow us to get funding
more quickly where it’s needed.”
IFC mobilizes funding from other financiers to meet the needs of private
sector clients in emerging markets. Lenders who adopt the Master
Cooperation Agreement benefit from IFC’s existing syndication platform,
deal-structuring expertise, due diligence, and global presence.
“This agreement is a new step in our cooperation with IFC,” said Igor
Finogenov, Chairman of the Executive Board of EDB. “It will add momentum
to our joint efforts to support development of critical sectors in our
member countries such as infrastructure and finance. The Master Cooperation
Agreement will help to streamline this work.”
Signatories to the Master Cooperation Agreement are the Belgian Investment
Company for Developing Countries (BIO), France’s Société de Promotion
et de Participation pour la Coopération Economique (Proparco); Germany’s
Deutsche Investitions- und Entwicklungsgesellschaft mbH ( DEG); the Development
Bank of Japan (DBJ), the Netherlands’ Nederlandse Financierings-Maatschappij
Voor Ontwikkelingslanden N.V. (FMO); the OPEC Fund for International Development
(OFID); the Black Sea Trade and Development Bank (BSTD); and the Development
Bank of Austria, Oesterreichische Entwicklungsbank (OeEB), Arab Petroleum
Investments Corp (APICORP).
In its last fiscal year ending June 30, 2010, IFC mobilized $734 million
through 14 syndicated parallel loans for projects in emerging markets.
International financial institutions accounted for 37 percent of the $2
billion that IFC mobilized through loan syndications, compared to 17 percent
of $2.2 billion in fiscal 2009. In the first half of fiscal year 2011,
which ended December 31, 2010, IFC mobilized $672 million through 11 syndicated
parallel loans to emerging market borrowers, 45 percent of them to borrowers
in the poorest countries, and often in remote, frontier regions of those
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.
The Eurasian Development Bank (EDB) is an international financial institution,
a sub-regional development bank, founded by Russia and Kazakhstan in January
2006 with the mission to facilitate the development of market economies,
sustainable economic growth and expansion of mutual trade and other economic
ties in its member states. The EDB charter capital exceeds US$1.5 billion.
The EDB member states are the Russian Federation, the Republic of Kazakhstan,
Republic of Armenia, Republic of Tajikistan and Republic of Belarus.
For more information, visit www.eabr.org.