Moscow, Russia, June 13, 2012—IFC, a
member of the World Bank Group, is investing $75 million in the Diversified
Payment Rights financing transaction by Raiffeisenbank’s Russian subsidiary,
ZAO Raiffeisenbank, contributing to capital market development in Russia
by reintroducing this form of long-term finance to the country for the
first time since 2007.
In addition to IFC's seven-year financing,
WestLB is acting as another anchor investor on the transaction with a 5
year tranche. The joint lead arrangers on this transaction are WestLB and
Raiffeisen Bank International.
Diversified Payment Rights financing uses
foreign currency in-flows from export and other sources as collateral,
enabling funding at longer tenors and cheaper rates than would be provided
through unsecured loans. The IFC funding will allow ZAO Raiffeisenbank
to expand finance to small and medium enterprises, and municipalities.
This will help diversify Russia’s economy through private entrepreneurship
and development of social and economic infrastructure, including roads,
water, transportation, and healthcare facilities.
Sergei Monin, Chairman of the Board of Raiffeisenbank,
said, “The establishment of the Diversified Payment Rights program is
an important step towards a further diversification of funding options
for ZAO Raiffeisenbank. The Diversified Payment Rights program gives the
bank access to a new funding source which can be tapped even in a challenging
environment. The close cooperation with IFC under this transaction continues
the historically successful relationship between our institutions.”
Khawaja Aftab Ahmed, IFC Financial Markets
Director for Europe, Central Asia, the Middle East and North Africa, said,
“In this transaction IFC plays the role of an anchor investor in the first
Diversified Payment Rights financing in Russia since the 2008 financial
crisis. This inaugural Diversified Payment Rights program of Raiffeisenbank
is expected to mobilize up to $800 million from institutional and private
investors over time, and would have an important demonstration effect for
Russian capital markets.”
This investment builds on IFC’s relationship
with Raiffeisenbank, which began in 2003, and contributes to IFC’s strategy
in Russia to support private sector development and encourage economic
growth. The country became a member and shareholder of IFC in 1993. Since
then, IFC has invested nearly $6 billion in Russia, including $1.5 billion
in syndicated loans, and is involved in 250 projects across a variety of
sectors. IFC’s investment portfolio in Russia stands at $2.54 billion,
the third-largest country exposure for IFC globally.
IFC, a member of the World Bank Group, is
the largest global development institution focused exclusively on the private
sector. We help developing countries achieve sustainable growth by financing
investment, providing advisory services to businesses and governments,
and mobilizing capital in the international financial markets. In fiscal
2011, amid economic uncertainty across the globe, we helped our clients
create jobs, strengthen environmental performance, and contribute to their
local communities—all while driving our investments to an all-time high
of nearly $19 billion. For more information, visit www.ifc.org.
ZAO Raiffeisenbank is a subsidiary of Raiffeisen
Bank International AG. Raiffeisenbank ranks 10th among the Russian
banks in terms of assets, based on Q1 2012 results (Interfax-CEA). According
to the same Interfax-CEA data, ZAO Raiffeisenbank ranks 5th
in terms of liabilities of individuals and
10th with regard to consumer lending.
To learn more about ZAO Raiffeisenbank, visit www.raiffeisen.ru