Kyiv, Ukraine, June 2, 2008—IFC,
a member of the World Bank Group, has agreed to support a joint venture
project between Asnova, a privately owned Ukrainian company, and Raven
Russia Limited, a London-listed real estate investment company, to expand
and modernize a warehousing facility in the outskirts of Kyiv, Ukraine.
The investment will help relieve a shortage of modern warehousing services
and promote private sector development.
Rapid growth in Ukraine’s retail sector
and increasing consumer demand have led to the warehousing shortage. As
a result, supply chains remain inefficient and economies of scale are not
used fully. This translates into higher costs for producers, suppliers,
retailers, and consumers.
IFC will provide a $28.5 million loan
to Logistics Centre Kalynivka, the project formed by Asnova and Raven Russia.
The funds will help build 85,000 square meters of new warehouses and refurbish
15,000 square meters of existing buildings—all with state-of-the-art infrastructure.
IFC will also mobilize $24.7 million from participating banks.
"Our long-term cooperation with
IFC has added value to our new joint venture with Raven Russia and helped
us obtain financial support for our ambitious investment plans. Together,
we will launch the up-to-date logistics center, which will create new jobs
in the region, contribute substantial tax payments to local government,
and demonstrate that Ukraine is attractive for prominent foreign investors,"
said Urfan Guliyev, CEO of Ashova Holding.
“This is Raven Russia's first project
with IFC, and we are keen to develop a strong relationship as our company
expands into Ukrainian and Russian cities,” commented Richard Jewson,
Chairman of Raven Russia.
“The agreement with Raven represents
an important and strategic partnership for us. It is also another
step in our long-term relationship with Asnova. This effort will help improve
local supply chains and develop the private sector,” said Dimitris Tsitsiragos,
IFC Director for Global Manufacturing and Services.
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 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.