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Russian Air Taxi Takes off with IFC’s Support


IFC Moscow
Nezhdana Bukova
tel. +7 (495) 411 7555 (ext. 2026)

Nbukova@ifc.org
DEXTER  
Evgenia Pshenichnova

tel. +7 (495) 225 4187 (ext. 302)

Email:
Evgenia.N.Pshenichnova@airmg.ru



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 Investors.  

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.”

Additional Information

About Dexter

Dexter will use 101 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.

About IFC

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, visit
www.ifc.org/europe.