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.