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 www.ifc.org.
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 www.ifc.org/europe.
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