Moscow, Russia, March 18, 2014—IFC,
a member of the World Bank Group, will provide KuibyshevAzot, a leader
in Russia’s chemical industry, with $150 million in debt financing to
support its expansion and modernization in order to make the company more
competitive and boost economic development in Russia’s Samara region.
The financing package consists of a
$75 million loan for IFC’s own account and a $75 million loan syndicated
from three commercial banks. IFC’s mobilization will help KuibyshevAzot
diversify its funding sources and improve foreign investors’ confidence
in Russian industries.
“IFC is our long-term partner with
global industry expertise and local knowledge,” said Victor I. Gerasimenko,
CEO of KuibyshevAzot. “IFC not only supports us with much needed long-term
financing, but also provides us with environmental and social technical
expertise, helping us become more competitive and efficient.”
Since 2003, IFC has worked with KuibyshevAzot
to support growth, enhance corporate governance, improve environmental
and social practices, and implement resource and energy efficiency improvements.
IFC has been a KuibyshevAzot shareholder since 2008, and has provided the
company with debt financing before.
“This investment is in line with IFC’s
strategic priorities in Russia,” said Tomasz Telma, IFC Director for Europe
and Central Asia. “It supports the expansion and modernization of production
in an environmentally friendly way, introduces a key Russian company to
new financial partners, and supports Russia’s economic diversification
by boosting production of higher value-added products.”
Russia became a member and shareholder
of IFC in 1993. Since then, IFC has invested more than $11 billion in 294
projects across a variety of sectors, including $3.3 billion in syndicated
loans and other forms of mobilizations. IFC’s investment portfolio in
Russia stands at $2.2 billion.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in more than 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and promote shared prosperity. In FY13, our investments climbed
to an all-time high of nearly $25 billion, leveraging the power of the
private sector to create jobs and tackle the world’s most pressing development
challenges. For more information, visit www.ifc.org.
KuibyshevAzot OJSC is one of the leaders
of the chemical industry in Russia. Located in Togliatti, Samara region,
KuibyshevAzot produces ammonia and nitrogen fertilizers, as well as caprolactam
and its value added derivatives (e.g. synthetic fibers, engineering plastics,
cord fabric). About 60 percent of the company’s products are exported.
For more information, visit www.kuazot.ru.