Press Releases

IFC and NBD Bank Partner to Support SMEs and Energy Efficiency in Russia

In Moscow:
Maria Ovchinnikova (IFC)

Phone: 7 (495) 411 7555


Nizhniy Novgorod, December 12, 2007—IFC, a member of the World Bank Group, is providing financing to NBD Bank to help develop a new financial product for energy efficiency projects in Russia’s Privolzhsky federal district. IFC has issued a $15 million line of credit to the bank, of which $8 million will be dedicated to this effort.

NBD Bank is the first regional bank to receive an IFC loan aimed at developing energy efficiency financing for small and medium enterprises. The bank will support companies in the manufacturing and services sectors that plan to undertake energy efficiency modernization. It will provide funds in either Russian rubles for up to five years or in U.S. dollars for up to 7.5 years. The maximum loan amount will be $2 million equivalent. The SMEs will benefit from extended loan terms, a favorable interest rate, and a grace period for up to a year.

“Our main goal is help smaller businesses develop and to promote the growth of the whole region,” said Evgeny Maksakov, Head of Corporate Finance and Clients Department of NBD Bank. “Cooperating with IFC will help our clients become more efficient, as well as contribute to solving the region’s energy deficit.”

According to the Russian Center for Energy Efficiency, the rate of economic growth and increasing demand for energy will result in a significant deficit by 2020. Energy intensity and rising energy costs in Russia are having a substantial impact on profits for local SMEs.  

Miles Stump, Manager for the IFC Russia Sustainable Energy Finance Program, said, “The shortage of electric power-generating capacity and growth in energy tariffs puts the competitiveness of Russian businesses at risk. Recognizing this, company owners and managers have begun to place greater emphasis on reducing energy costs.”

The market for energy efficiency financing in Russia has significant potential, yet it is untapped. According to IFC estimates, a $35 billion investment by the country’s industrial enterprises will reduce the energy consumption rate by 37 percent.  The benefits of this could be considerable, lowering operational costs, increasing global competitiveness, and reducing greenhouse gas emissions.

“We are pleased that NBD Bank has joined IFC's energy efficiency program and will be one of the first in the region to offer loans for energy efficiency projects. We believe that this will help position the bank ahead of its competitors,” said Timothy Krause, Head of IFC’s Financial Markets in Central and Eastern Europe.  

Today, IFC is investing over $400 million in energy efficiency projects around the world.

About IFC

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 poor people 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 loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit

IFC in Russia

Russia became a member and shareholder of IFC in 1993. IFC’s investment portfolio in the country currently stands at $2.48 billion, making it the largest country exposure for IFC globally.  IFC has invested in key sectors including agribusiness, banking, construction materials, health care, housing finance, information technologies, infrastructure, leasing, mining, oil and gas, pulp and paper, retail, and telecommunications. For more information, visit

The IFC Russia Sustainable Energy Finance Program is designed to stimulate investment in energy efficiency by helping financial institutions build energy efficiency finance services.  The program consists of financing and advisory services. IFC provides credit lines to banks and leasing companies that are used exclusively for financing energy efficiency projects. IFC supports these financial institutions and their clients by providing consultations on technical, financial, and legal issues, as well as holding seminars on financing energy efficiency.  The program is supported by the Global Environment Facility, Denmark, Finland, the German state of Saxony, and IFC.

About NBD Bank

Founded in 1992, NBD Bank is an interregional bank based in Nizhny Novgorod, Russia. The bank specializes in serving small and medium enterprises. It has a network of 17 offices in three Russian regions: the Nizhny Novgorod and Ivanovo regions and the Chuvash Republic.

In Nizhny Novgorod:
Elena Kuzichkina (NBD Bank)
Phone: 7 (8312) 30 80 61