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IFC, EBRD’s New Stake in Primsotsbank to Help Russia’s Underserved Regions


In Washington, DC
Irina Likhachova
Phone: +1 202 473 1813
Email: ilikhachova@ifc.org

In Moscow
Nezhdana Bukova
Phone: + 7 (495) 411 7555 ext 2026
Email: nbukova@ifc.org


Moscow, March 30, 2007 – IFC (International Finance Corporation), the private sector arm of the World Bank Group, and the European Bank for Reconstruction and Development have acquired a stake of 25 percent plus two shares in the capital of Primsotsbank, a midsize bank with headquarters in Vladivostok and an extensive network of about 30 branches across the Russian Far East. The shares will strengthen the bank’s capital base and support its financing of small and medium enterprises, as well as its mortgage and retail lending in one of Russia’s remotest and underserved regions.

Dmitri Yarovoi, Chairman of the Board of Primsotsbank, said, “We welcome IFC and EBRD as our new shareholders. Working with foreign investors will allow us to strengthen our position in the regional markets, introduce new technologies, and improve our quality of services. We will be able to offer our small business clients better lending terms and expanded mortgage and retail lending.”

Jerome Sooklal, IFC Director for Central and Eastern Europe, said, “Regional financial institutions are the focus of IFC’s strategy in the Russian financial markets. Primsotsbank provides retail and small business lending in the Far East region, where banking services are still underdeveloped, and we are committed to help the bank grow and improve its operations, governance, and transparency.”

In 2006, IFC provided the Bank with a 150 million ruble subordinated loan, which is being repaid as part of the equity investment process.

IFC, the private sector arm of the World Bank Group, promotes open and competitive markets in developing countries.  IFC supports sustainable private sector companies and other partners in generating productive jobs and delivering basic services, so that people have opportunities to escape poverty and improve their lives. Through FY06, IFC Financial Products has committed more than $56 billion in funding for private sector investments and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. IFC Advisory Services and donor partners have provided more than $1 billion in program support to build small enterprises, to accelerate private participation in infrastructure, to improve the business enabling environment, to increase access to finance, and to strengthen environmental and social sustainability. For more information, please visit www.ifc.org.

IFC in Russia
Russia became a member and a shareholder of IFC in 1993.  Since then IFC has invested $3.4 billion in the country, including $527 million in syndicated loans, in over 130 projects across a variety of sectors.  In FY06, IFC’s investments reached $519 million.  IFC’s investment portfolio in Russia 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, visit www.ifc.org/europe.

In Russia
Olga Ivaschuk, Primsotsbank
Phone: +7 (423) 242-1304, ext 236