Kyiv, Ukraine, Oct 7, 2010—IFC,
a member of the World Bank Group, is helping retail chain Nova Liniya expand
operations in Ukraine to boost local production and support retail development
in underserved local markets.
IFC’s $22 million loan will support Nova Liniya’s expansion program,
which includes building five new do-it-yourself stores throughout Ukraine.
The investment in Nova Liniya, will help the company increase its number
of stores to 19, expand access to affordable products, and create jobs.
“We are pleased to have IFC as a long-term partner,” said Oleg Shandar,
Chairman of Nova Liniya. “Thanks to IFC’s support over the years,
our company has grown, our range of home-improvement goods has increased,
and our new stores will provide local consumers with more efficient distribution
The project will be implemented over two-and-a-half years, and Nova Liniya’s
new stores will be located in Bucha, Feodosia, Kyiv, Odessa, and Sevastopol.
The project will generate employment both directly and indirectly, and
it will boost production and lower dependence on imports.
Elena Voloshina, IFC Country Representative for Ukraine, said, “IFC’s
investment in Nova Liniya is in line with our strategy to help clients
by providing long-term financing that is not easily available in Ukraine
following the financial crisis. Nova Liniya’s expansion program will help
make the retail sector more competitive through developing the supply chain."
Dragon Capital, one of Nova Liniya’s major shareholders and a leading
Ukrainian investment bank, acted as the sole financial adviser for Nova
Liniya on the transaction.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.
For more information about Nova Liniya, please visit www.novalinia.com.ua.
For more information about Dragon Capital, please visit www.dragon-capital.com.