Press Releases

IFC Expands Energy Efficiency Program in Russia in Partnership with MDM Bank

IFC Moscow:
Nezhdana Bukova

Phone: +7 495 411 7555


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.

About IFC

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

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

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, visit