Washington DC, November 25, 2002—The
International Finance Corporation (IFC), the private sector development
arm of the World Bank Group, signed an agreement to provide a US$70 million
loan package to Ramenka, a top tier grocery retail and commercial real
estate company in Moscow. The investment will support Ramenka’s expansion
plans to almost double the company’s retail space.
IFC’s financial package for Ramenka’s expansion consists of loans of
$10 million and $30 million for IFC’s own account, and a $30 million syndicated
loan for the account of international financial institutions. Raiffeisen
Zentralbank Österreich AG, as Co-Arranger, was joined in the IFC B Loan
syndication by ABN AMRO and International Finance Participation Trust at
the Senior Manager level.
Ramenka is one of Moscow’s largest retailers and, under the name Ramstore,
operates four shopping malls and ten supermarkets.
“Our new expansion is part of Ramenka’s strategy to respond to the rapid
growth of Moscow’s retail market and to strengthen further its position
as the sector leader,” said Ramenka’s General Director Mustafa Saglam.
“IFC has enjoyed an excellent relationship with Ramenka for a number of
years,” said Richard Ranken, Director of IFC’s Global Manufacturing and
Services Department, referring to two loans for $30.5 million and $30.0
million, which IFC extended to Ramenka in 1999 and 2001 respectively. “During
these years, the company has proven its reputation for transparency, efficiency
and commitment to its market, and IFC is glad to continue providing support
to Ramenka in its pursuit of a leadership position in the Moscow retail
market,” added Mr. Ranken.
“Ramenka’s expansion will have a significant developmental impact for
the city,” noted Edward Nassim, IFC’s Moscow-based Director of Central
and Eastern Europe Department. “Today, Moscow has the least amount of
per capita retail space and has among the highest rental rates of European
capitals. Ramenka’s project will increase the supply of quality retail
space and help lower overhead costs for a wide variety of consumer goods.
Furthermore, the successful syndication of the IFC B Loan is indicative
of increased international lender confidence in Russia,” added Mr. Nassim.
Owned on a 50/50 per cent basis by Migros, Turkey’s largest and oldest
supermarket chain, and Enka Insaat, one of the leading Turkish industrial
groups active in construction, property development and retail, Ramenka
started its business in Moscow with one shopping mall in November 1997,
and has grown rapidly since then, despite the 1998 financial crisis in
IFC has worked actively to support the development of a strong private
sector in Russia since the country became an IFC member in 1993. IFC has
invested over $136 million in equity and provided loans totaling $448 million
to the private sector in Russia, as well as mobilizing $110 million from
other sources of financing.
IFC’s mission is to promote sustainable private sector investment in developing
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, and provides technical assistance
and advice to governments and businesses. Since its founding in 1956 through
FY02, IFC has committed more than $34 billion of its own funds and arranged
$21 billion in syndications for 2,825 companies in 140 developing countries.
IFC’s worldwide committed portfolio as of FY02 was $15.1 billion for its
own account and $6.5 billion held for participants in loan syndications.