Kyiv, Ukraine, June 26, 2006 - The
International Finance Corporation, the private sector arm of the World
Bank Group, provided a $45 million loan and will provide an additional
$55 million through syndication to Velyka Kyshenya, a leading supermarket
chain in Ukraine. IFC’s financing will help the company expand rapidly
in larger cities in the country by taking advantage of the significant
growth potential of the Ukrainian grocery retail market.
Velyka Kyshenya opened its first store in 2000. Since then, the company
has grown into one of the top supermarket chains in Ukraine. Today, the
company operates 27 supermarkets and hypermarkets in the country. Sixteen
of the stores are located in Kyiv, where the VK brand is a market leader,
and 11 are located in other large Ukrainian cities.
Roman Lunin, Velyka Kyshenya’s Chairman of the Board, said, “The expansion
will allow the company to capture a greater geographical market by strategically
diversifying out from Kyiv to other larger cities in Ukraine, where competition
is nascent and market growth is expected to be high. IFC funding
is essential in our endeavor to establish a stronger presence in the regional
markets and strengthen the company’s position as one of the largest supermarket
chains in Ukraine.”
Dimitris Tsitsiragos, IFC’s Director for Global Manufacturing and Services,
said, “IFC is pleased to support Velyka Kyshenya’s expansion by supplying
long-term funds and mobilizing financing through syndication, which will
ensure its access to international capital markets. The project will bring
western-style supermarket retailing to Ukraine’s largest cities, and contribute
to economic development by creating jobs, providing better prices and product
selection for consumers, and developing and improving the quality of local
suppliers and producers.”
The International Finance Corporation is the private sector arm of the
World Bank Group and is headquartered in Washington, D.C. IFC coordinates
its activities with the other institutions of the World Bank Group but
is legally and financially independent. Its 178 member countries
provide its share capital and collectively determine its policies.
The mission of IFC (www.ifc.org). is to promote sustainable private sector
investment in developing and transition countries, helping to reduce poverty
and improve people’s lives. IFC finances private sector investments
in the developing world, mobilizes capital in the international financial
markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY05, IFC has committed more than $49
billion of its own funds and arranged $24 billion in syndications for 3,319
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY05 was $19.3 billion for its own account and $5.3 billion held
for participants in loan syndications.
Ukraine became a shareholder and a member of IFC in 1993. As of May 31,
2006, IFC has invested more than $505 million in 26 projects. IFC expanded
its investment program in Ukraine significantly in FY05, committing $255
million in the agribusiness, financial, and general manufacturing sectors.
IFC has also been conducting an extensive advisory program since 1992,
which initially focused on the privatization of small businesses, land,
and idle construction sites. Current donor-funded programs offer advice
on corporate governance, leasing, and agribusiness. IFC also seeks to improve
the business environment and promote growth of small and medium enterprises.