Press Releases

Landmark IFC Investment in Russia’s MDM Bank Will Help Expand Services, Improve Industry Standards

In Moscow:
Nezhdana Bukova
Phone: + 7 (495) 411 7555 ext 2026

In Washington, DC:
Irina Likhachova
Phone: +1 (202) 473 1813

Moscow, September 5, 2007 — IFC, a member of the World Bank Group, announced today that it will invest equity in Russia’s MDM Bank. This landmark $184 million investment will support MDM Bank’s business strategy in areas important for Russia’s development, including expansion of banking services to underserved regions and new products such as energy efficiency finance. IFC’s largest equity investment in Russia’s financial markets to date and one of its largest bank investments globally, it will allow IFC and MDM Bank to set the standard for banking practices in Russia.

IFC’s latest investment in MDM Bank is part of a $319 million financing package, which also includes a term loan and trade finance line that IFC has structured for the bank over the past year. IFC will also provide advisory services to establish an environmental management system that will help the bank make its operations more sustainable and to help it develop new products, including energy efficiency finance for Russian companies.

Jerome Sooklal, IFC’s Director for Central and Eastern Europe, said, “This equity investment further deepens our relationship with the bank and its shareholders.  MDM Bank is central to IFC’s financial markets strategy in Russia, as this partnership enables us to make strategic developmental contributions to the country’s banking sector.”

Jyrki Koskelo, IFC’s Director for Global Financial Markets, said, “MDM Bank is a natural choice as a long-term partner for IFC. It has met IFC’s stringent investment criteria, including good financial standing, growth and profitability prospects, appropriate developmental priorities, transparency, high-quality corporate governance, and shareholder vision and commitment. We look forward to supporting the bank’s business strategy in the future, including its expansion into underserved markets and the introduction of innovative financial products."

About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing capital in the international financial markets, and providing advisory services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY06, IFC committed $8.3 billion, including syndications, to 284 investments in 66 developing countries. For more information, please visit

IFC in Russia
Russia became a member and shareholder of IFC in 1993. IFC’s investment portfolio in the country 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, please visit

About MDM Bank
MDM Bank was founded in December 1993 and holds a general banking license issued by the Central Bank of Russia. It is a modern, universal financial institution that offers clients a full range of services. Today, the bank is one of the most profitable in Russia. It also has one of the highest credit ratings among privately owned Russian banks: Standard & Poor’s (BB, stable), Fitch Ratings (BB-, positive), and Moody’s (Ba1). MDM Bank is the only Russian financial organization that has been given a public corporate governance rating by Standard & Poor’s (6+).
In 2007, MDM Bank received the “Corporate Governance Editors Award” from Global Finance, which also named it “Russia’s Best Foreign Exchange Bank.”