September 3, 2008, Moscow, Russia—IFC,
a member of the World Bank Group, is helping expand modern logistics services
in Russia’s Novosibirsk region by supporting Megalogix’s effort to build
a 120,361-square-meter logistics center in the region.
IFC has agreed to provide a $95 million financing package to Megalogix,
which is building modern warehouses in major cities across Russia. The
package comprises $40 million in debt financing for IFC's own account and
$55 million in syndicated loans.
Megalogix is a joint venture between the Avalon Group, a leading distributor
of consumer goods in Russia; and Raven Russia Limited, a London-listed
real estate investment company.
“This is Raven Russia's second project with IFC and highlights the strong
relationship we have developed as we expand together across the Russian
Federation”, said Richard Jewson, Chairman of Raven Russia. “The project
demonstrates Raven Russia's ability to expand further into Russia’s regional
cities and its continuing success in raising finance for quality projects
at competitive rates in the current credit markets.”
“Business infrastructure, particularly warehouses, is key to developing
the Russian economy,” said Dimitris Tsitsiragos, IFC Director for Global
Manufacturing and Services. “We are pleased to continue providing financial
support to Raven Russia. This will help develop a warehouse network in
Russia's frontier regions, and the syndications will help introduce the
capital-intensive project to international banks.”
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.
Russia became a member and a shareholder of IFC in 1993. Since then
IFC has invested over $3.6 billion in the country, including $527 million
in syndicated loans, in more than 150 projects across a variety of sectors.
IFC’s investment portfolio in the country currently 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.