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IFC Supports Smaller Businesses with Investment in Credit Bank of Moscow


In Moscow:
Nezhdana Bukova, IFC

Phone: +7 985 411 3986
E-mail:
NBukova@ifc.org

Elena Finashina, Credit Bank of Moscow

Phone: +7 495 797 42 22, ext.6202

E-Mail: Finashina@mkb.ru


Moscow, Russia, July 23, 2012— IFC, a member of the World Bank Group, is investing 2.9 billion Russian rubles ($88.5 million) in Credit Bank of Moscow  to strengthen the lender's balance sheet and help it extend loans to  clients outside the capital region, including smaller businesses.

With the investment, IFC will acquire 7.5 percent of the bank's shares. The European Bank for Reconstruction and Development (EBRD) is also investing 2.9 billion Russian rubles in the lender, giving it a 7.5 percent equity stake. IFC and EBRD will help the bank improve its corporate governance and mobilize investors for a future initial public offering. The investment will also support the expansion plans of the bank, which specializes in financing for small and medium enterprises.


“We welcome IFC and EBRD as our new shareholders. This is a key milestone for our bank and important step in our long-term partnership, which gives us new opportunities to grow,” said Vladimir Chubar, Chairman of the Management Board of Credit Bank of Moscow. “This investment will spur our expansion, strengthen the bank’s capital, and support relationships with our partners, clients, and investors.”


Tomasz Telma, IFC Director for Europe and Central Asia, said, “Promoting access to finance for small and medium businesses is our priority globally and in Russia. Providing these firms with credit will help them grow and create jobs, supporting economic development across the country. Credit Bank Moscow shares our vision and we look forward to helping the bank grow and expand."


The investment builds on IFC’s relationship with Credit Bank of Moscow, which began in 2004. It is part of 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.


About IFC


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.

About Credit Bank of Moscow

Credit Bank of Moscow was founded in 1992 and was the 21st largest bank in Russia at the beginning of 2012. It is a universal credit and financial organization providing a full range of banking services. The bank’s network includes more than 70 offices, 600 ATMs and 4,000 payment terminals in the Moscow region. For more information about Credit Bank of Moscow, visit
http://english.mkb.ru/

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