April 7, 2006, Moscow, Russia—The
International Finance Corporation (IFC), the private sector financing arm
of the World Bank Group, is providing $15 million in quasi-equity to Russia’s
Air Transport Systems. The investment will support newly established
nationwide air taxi operations in Russia under the brand name Dexter. Dexter
is a joint venture of Messrs Sergei Generalov and Sergei Nedoroslev.
The investment agreement was signed today in Moscow by IFC’s Executive
Vice President, Lars Thunell, and Sergey Generalov, the president of Industrial
The Dexter project will be implemented by Air Transport Systems, the fleet
owner based in Nizhniy Novgorod, and Moscow-based Air Management Group,
the fleet operator.
Dexter will use IFC financing to acquire and operate a fleet of new Russian-made
six-seat M101T aircraft. By the end of the first phase of the project
in 2008, Dexter is expected to have a fleet of 45 aircrafts. The company
plans to eventually expand its fleet to up to 200 aircraft.
The aircraft will carry an estimated 1 million passengers a year between
300 regional towns through a combination of scheduled and on-demand flights.
This new air taxi service addresses the need for air transportation
on less traveled routes between regional cities that is not currently met
by larger airlines.
“Developing and upgrading infrastructure is a priority for Russia to maintain
its growth. The launch of Dexter’s service will catalyze greater
economic and social ties among Russia’s regions and contribute to further
development of local air transport infrastructure,” said Thunell, the
executive vice president of IFC. “IFC is committed to helping Russia attract
private investment in infrastructure and has invested over $380 million
in infrastructure projects across different sectors in Russia.”
“The agreement that we signed today is a result of a hard work of the
IFC team that has conducted a comprehensive project appraisal and has effectively
structured this complex deal.” – said Generalov, president of Industrial
Investors. “The main goal of the Dexter project is to restore the network
of direct flights between Russian regional towns. This is especially important
for smaller towns that today have limited or no air connection.”
“IFC’s partnership with Dexter is a good example of our strategy in Russia
to support current and future leaders, innovate and, when appropriate,
fully share the business risks with our partners,” said Edward Nassim,
IFC’s director for Central and Eastern Europe. “We are gaining much comfort
from the presence of Messrs Generalov and Nedoroslev who have broad experience
in implementing complex transport projects and have demonstrated a high
level of transparency.”
Dexter will use Ì101Ò aircraft, the only certified Russian aircraft in
its class with a range of up to 1100 km. The aircraft is equipped with
Walter M601F-32, one of the most reliable engines, as well as with Honeywell
navigation equipment and avionics. The aircraft’s landing gear allows
it to land on both paved and unpaved runways.
On-demand air taxi service will offer passengers full flexibility in choosing
both departure times and flight destinations. Dexter’s passengers will
use stand-alone dedicated terminals or lounges as well as streamlined check-in
and boarding. Operations will begin with service to Moscow, Kazan, Nizhniy
Novgorod, Samara, Saratov, Voronezh, Orel, Lipetsk, and Yaroslavl.
For additional information please call +7 (495) 980-6458.
The International Finance Corporation is the private sector arm of
the World Bank Group and is headquartered in Washington, D.C. IFC
coordinates its activities with the other institutions of the World Bank
Group but is legally and financially independent. Its 178 member
countries provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment
in developing and transition countries, helping to reduce poverty and improve
people’s lives. IFC finances private sector investments in the developing
world, mobilizes capital in the international financial markets, helps
clients improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. From its founding
in 1956 through FY05, IFC has committed more than $49 billion of its own
funds and arranged $24 billion in syndications for 3,319 companies in 140
developing countries. For more information, visit www.ifc.org.
IFC manages environmental and social risks associated with the projects
it finances through standards that its clients companies are required to
apply. In collaboration with client companies, IFC looks at business opportunities
arising from the protection of the environment and from social development.
IFC also explores and develops new financial products that create new business
opportunities linked with the environment and social development.
IFC in Russia
Russia became a member and a shareholder of IFC in 1993. Since then IFC
has invested $2.9 billion in the country, including $527 million in syndicated
loans, in over 110 projects across a variety of sectors. In FY05 (July
2004–June 2005) IFC’s investments reached $832 million. IFC’s investment
portfolio in Russia currently stands at $1.8 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,