Moscow, Russia, July 18, 2008—IFC
has signed a loan facility with Russia’s MDM Bank to help expand energy
efficiency financing to local companies. A $35 million loan for IFC’s
own account will support MDM Bank’s energy efficiency lending, while a
$500 million syndicated loan will support the trade finance projects of
the bank’s clients. The syndication is the largest ever by IFC in Russia,
and the largest deal by a private locally owned bank since August 2007.
Sustainable energy has become a global priority, and energy efficiency
is central to IFC's climate change strategy. Russia has the potential to
reduce its energy consumption by up to 45 percent and preserve its natural
resources for future generations, but this will require private sector
investment and focus.
Michel Perhirin, CEO of MDM Bank, said, “This deal marks an important
achievement for us. We are pleased with the success of the energy efficiency
product line introduced about a year ago. IFC's new commitment will
allow MDM bank to expand its offering significantly. The syndicated
loan represents a serious vote of confidence in MDM Bank. We are extremely
pleased with the level of interest from investors and look forward to putting
this funding to work for our clients in the nearest future.”
Jyrki Koskelo, IFC Vice President for Europe, Central Asia, and Global
Financial Markets, said, “IFC provides Russian banks with longer-term
credit lines designated for on-lending to companies to help upgrade their
old, energy-intensive equipment. We also provide advisory services to help
banks and their clients maximize their investments in energy efficiency.
These investments have a very high economic rate of return for Russia as
they offer the least expensive method to both improve competitiveness of
industries as well as increased production / exports due to saved energy.
MDM Bank is one of our main partners in Russia. It began rolling out its
energy efficiency finance product across the country last year, and we
are pleased to strengthen our cooperation by supporting its activities
in sustainable energy”.
The initial mandated lead arrangers for the IFC B-Loan are IFC, CALYON,
Commerzbank Aktiengesellschaft, DZ BANK, Frankfurt am Main, Emirates NBD,
Erste Bank der oesterreichischen Sparkassen AG, ING Bank N.V., Intesa Sanpaolo
SpA, Korea Development Bank, Raiffeisen Zentralbank Oesterreich AG, Sumitomo
Mitsui Finance Dublin Limited, and Wachovia Bank. CALYON, Erste Bank, ING
and RZB acted as joint bookrunners.
Other banks joining the IFC B-Loan are: Alpha Bank A.E., The Governor and
Company of the Bank of Ireland, Agricultural Bank of Greece SA, Banco Bradesco
Luxembourg S.A., First Gulf Bank PJSC, Piraeus Bank S.A., WGZ BANK AG,
Agricultural Bank of China, Banco Itaś BBA, Bank Leumi Le Israel B.M, BankMuscat
S.A.O.G., BANQUE BIA, Pohjola Bank plc, State Bank of India, Zśrcher Kantonalbank
and Citibank N.A.
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC's
vision is that people should have the opportunity to escape poverty and
improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through syndications and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.
Russia became a member and a shareholder of IFC in 1993. Since then
IFC has invested over $3.6 billion in the country, including $527 million
in syndicated loans, in more than 150 projects across a variety of sectors.
IFC’s investment portfolio in the country currently stands at $2.24
billion, making it the largest country exposure for IFC globally. IFC
has invested in key sectors including banking, leasing, housing finance,
infrastructure, mining, agribusiness, pulp and paper, construction materials,
oil and gas, telecommunications, information technologies, retail, and
health care. For more information, 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. MDM Bank is one of the most dynamically
developing banks in Russia and is among the top Russian banks in terms
of assets and equity. Today, MDM Bank is a modern universal financial institution
offering a full range of services to its clients. For more information,