Press Releases

IFC Investment in Locko Bank to Expand Access to Finance for Smaller Businesses in Russia

In Moscow:
Nezhdana Bukova
Phone: +7 (495) 411-7555 ext. 2026

In Washington, D.C.:
Lotte Pang
Phone: +1 (202) 458-0952

Moscow, July 14, 2008—IFC, a member of the World Bank Group, is supporting the lending program and regional expansion of Locko Bank, a midsize commercial bank in Russia, focused on lending to small and medium enterprises. In addition to its own funds, IFC has mobilized resources from other financial institutions.

The $65 million financing package comprises a three-year $20 million loan for IFC’s own account and a one-year $45 million syndicated loan.

Mikhail Pavlov, Deputy Chairman of the Locko Bank Management Board, said, “We welcome this financing from IFC and its syndication partners. It will help us serve our SME clients better, accelerate economic expansion in Russia, and introduce us to the new financiers that participated in the syndicated loan.”

IFC became a shareholder of Locko Bank in 2006, and it has a seat on the board of directors and actively participates in the bank’s strategic management.

Nena Stoiljkovic, IFC Director for Central and Eastern Europe, said, “We are excited to work with Locko Bank as a shareholder and financier. We are very satisfied with the bank’s dynamic development and look forward to its further growth and geographic expansion.”

Arrangers of the syndication include:
Mandated lead arrangers: Banif, Commerzbank, FBN Bank (United Kingdom), OCBC Bank, RZB, VTB Bank (Deutscheland)
Lead arrangers: Bank Leumi, Deutsche Bank, and Erste Bank
Co-lead arrangers: LHB Bank and National City
Arrangers: Anglo-Romanian Bank and BRE Bank

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 poor 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 shareholder of IFC in 1993. Since then IFC has invested more than $3.6 billion in the country, including $527 million in syndicated loans. IFC’s investment portfolio in the country 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