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IFC Lends $8 million to Savservice Center, Ukraine’s Leading Distribution Company


In Kyiv
Larissa Shidlovskaya
Tel.: +380 44 490 6400
E-mail: lshidlovskaya@ifc.org
 
In Washington
Irina Likhachova
Tel.: +1 202 473 1813
E-mail: ilikhachova@ifc.org
 


Kyiv, Ukraine, June 13, 2006 —The International Finance Corporation, the private sector financing arm of the World Bank Group, provided an $8 million loan to Ukraine’s LLC Savservice Center, a leader in the distribution of fast-moving consumer goods.

Savservice Center and its subsidiary company Komora-S will use IFC’s financing to expand their warehousing and logistics business. This will allow Savservice Center to keep up with growing volume and service quality requirements of its clients, as well as to increase the supply of high-quality warehouse space in the vicinity of Kyiv.

“Savservice Center has achieved impressive results since its founders started their business in 1994.  From one small store in Kyiv, the business has developed into one of Ukraine’s leading fast-moving consumer goods companies.  Much of this success is due to Savservice Center’s dedication to understanding and implementing best international management practices.  To support locally-owned companies with such commitment is an important part of IFC’s strategy in Ukraine,” commented Edward Nassim, IFC’s director for Central and Eastern Europe.

“The further expansion of Savservice Center’s business will contribute to the development of modern distribution services in Ukraine. This, in turn, will support the growth of the retail sector through improving the flow of goods from suppliers to retailers and lowering their overhead costs,” said Dimitris Tsitsiragos, the director of IFC’s global manufacturing and services department.

“Currently, the supply of quality warehouse space in Kyiv lags far behind rapidly growing demand.  We will help address this market imbalance, using part of the IFC loan to upgrade our existing warehouses and open new modern warehouses.  At the same time, we will continue to invest in the development of our warehousing and logistics services.  This will further strengthen our value proposition to clients and our leadership in the Ukrainian fast-moving consumer goods sector,” said Urfan Guliev, Investment director of Savservice Center’s parent company, Asnova Holding.

Additional Information

Savservice Center
is a group of companies, the first of which was founded in 1994, that are part of Asnova Holding.  In addition to Savservice Center, Asnova Holding owns and operates the retail chain DC, one of the largest networks of household and personal care stores in Ukraine. For more information, please visit
www.asnova.com.

The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C.  IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent.  Its 178 member countries provide its share capital and collectively determine its policies.

The mission of IFC is to promote sustainable private sector investment in developing and transition 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, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses.  From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications. For more information, please visit
www.ifc.org.

Ukraine became a shareholder and a member of IFC in 1993. As of May 31, 2006, IFC has invested more than $505 million in 26 projects. IFC expanded its investment program in Ukraine significantly in 2004-2005, committing $255 million in the agribusiness, financial, and general manufacturing sectors. IFC has also been conducting an extensive advisory program since 1992, which initially focused on the privatization of small businesses, land, and idle construction sites. Current donor-funded programs offer advice on corporate governance, leasing, and agribusiness. IFC also seeks to improve the business environment and promote growth of small and medium enterprises.