Moscow, Russia, February 15, 2013—IFC,
a member of the World Bank Group, is providing a loan of 900 million Russian
rubles (around $29 million) to Center-Invest Bank to help it expand access
to finance for small and medium enterprises in the Russia Federation’s
This loan will help the bank increase
lending to smaller businesses in less-developed frontier regions, helping
create jobs and diversify the local economy. This new financing builds
on the long-term partnership between IFC and Center-Invest Bank that began
Vasily Vysokov, Chairman of Center-Invest
Bank, said, “We are grateful for IFC’s long-term financial support and
valuable advice, which help us provide our clients with innovative products.
We look forward to further successful cooperation with IFC, with which
we share a commitment to the sustainable banking business model.”
Jim Yong Kim, World Bank Group President,
said, “Regional banks have a vital role to play in the development of
Russia’s economy. Long-term partnerships with regional banks allow us
to channel much-needed finance to local companies, contribute to the creation
of jobs and the development of infrastructure, and to promote sustainable
banking in Russia’s regions.”
Since 2002, IFC has provided Center-Invest
Bank with over $40 million in debt finance. IFC has also provided the lender
with a host of targeted advisory services that helped the bank launch several
pioneering financial products focused on energy efficiency.
This new investment is part of IFC’s
efforts 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 more than $10 billion in Russia, including $3.2
billion in syndicated loans, and has been involved in 270 projects across
a variety of sectors. IFC’s investment portfolio in Russia stands at $2.3
billion, the fourth-largest country exposure for IFC globally.
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, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.
About Center-Invest Bank
Center-Invest Bank is the largest private
bank in southern Russia, with 140 offices in the region. It has a rating
of Ba3+ from Moody’s and 14 years of IFRS reporting. The largest shareholders
are EBRD (27.5%) and DEG (22.5%), along with Erste Bank (9.8%) and the
Vysokov family (17%). Its sustainable banking business model focuses on
SMEs, women in business, start ups, young entrepreneurs, and energy efficiency.
For more information, visit: www.centrinvest.ru/en.