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
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."
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 www.ifc.org.
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 www.ifc.org/europe.
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 &
In 2007, MDM Bank received the “Corporate
Governance Editors Award” from Global Finance, which also named
it “Russia’s Best Foreign Exchange Bank.”