Moscow, Russia, June 3, 2002—The International
Finance Corporation, the private sector development arm of the World Bank
Group, has signed an agreement to provide a five-year US$7 million loan
to KMB Bank, a regional microfinance and SME bank in Russia, to support
its portfolio growth.
KMB is headquartered in Moscow but it has developed strong regional presence
with five regional branches in St. Petersburg, Nizhny Novgorod, Novosibirsk,
Omsk, and Samara, as well as thirteen representative offices. In
the past three years, KMB Bank has become a leading small and micro credit
institution in Russia with over $100 million equivalent in outstanding
“This investment in KMB reflects IFC’s commitment to its global microfinance
strategy of supporting commercially viable microfinance activities, while
strengthening the financial sector in Russia,” said Peter Woicke, IFC’s
Executive Vice President, during the signing ceremony with Reiner Mueller-Hanke,
Chief Executive Officer of KMB Bank.
“Support for SMEs through sound financial intermediaries is a key component
of IFC’s strategy in Russia. With most of KMB’s business now generated
outside of Moscow, IFC’s financing will support development of private
SMEs and microenterprises in the regions of the Russian Federation whose
investment and working capital needs are currently underserved by financial
institutions,” added Edward Nassim, IFC’s Moscow-based Director for Central
and Eastern Europe.
KMB is owned by EBRD, Soros Economic Development Fund, DEG, and Triodos-Doen
and is managed by Internationale Projekt Consult GmbH, a financial services
company with some 20 years of experience in managing and investing in SME
and microfinance institutions in emerging markets. In addition to
the $7 million loan which was finalized today, IFC Board approved a $3
million IFC equity investment in KMB which is expected to become part of
the next capital increase of KMB in the summer of 2002.
IFC’s mission is to promote sustainable private sector investment in developing
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, and provides technical
assistance and advice to governments and businesses. Since its founding
in 1956 through the close of the last fiscal year on June 30, 2001, IFC
committed more than US$31 billion of its own funds and arranged $20 billion
in syndications for 2,636 companies in 140 developing countries. IFC’s
committed portfolio at the end of FY01 was US$14.3 billion.