Moscow, Russia; Washington D.C., USA; and
Istanbul, Turkey, February 21, 2003 —The International Finance Corporation
(IFC), the private sector financing arm of the World Bank Group, is lending
$10 million to OOO Ruscam, Russia's highest quality supplier of glass bottles
to the beverage industry.
The seven year loan will finance installation of a second furnace, which
will provide Ruscam with an additional 315 tons of glass making capacity
per day. IFC financed the installation of Ruscam’s first furnace in 2002
with a loan of $13 million.
“In June of 2002, Ruscam fired its first furnace with glass making capacity
of 275 tons per day. The quick follow-on investment in a second furnace
underscores our commitment to the Russian market, which we see as of strategic
importance to the Sise ve Cam Group (Sisecam). Ruscam has been very successful
in 2002, achieving a turnover of $9 million and selling 130 million bottles
since the first furnace was fired in May,” said Mr. Teoman Yenigün, Chief
Executive Officer, Sisecam Packaging Division.
“Continued support from IFC was important for Sisecam since we have a
longstanding relationship with the IFC and believed that the IFC could
deliver a speedy investment approval and commitment for this project,"
he continued."Despite continuing challenges in the local administrative
and legal landscapes, Ruscam and IFC together delivered the relatively
complex project financing in just over four months from appraisal to commitment."
“Ruscam’s world-class bottle production technology will raise the quality
of Russian-made bottles to international standards. The investment will,
among other benefits, enable Ruscam to satisfy bottlers’ demand for bottles
manufactured to beverage companies’ proprietary designs, allowing them
to differentiate the premium products from standard-quality products,”
concluded Mr. Yenigün.
“IFC’s investment in Ruscam reflects our continued commitment to supporting
Russia's private sector and follows the 17 projects IFC has already supported
in the last 12 months, investing $212 million and raising additional $43
million in syndications," said Ms. Sujata Lamba, Manager, IFC
Ruscam is located in the town of Gorokhovets in the Vladimir region, about
335 miles east of Moscow and just west of Nizhny Novgorod. Ruscam
is a subsidiary of Anadolu Cam Sanayii A.S., the glass packaging division
of Sisecam, Turkey’s leading glass producer.
Russia joined IFC in 1993. Since then IFC has invested over $720 million
of its own resources to finance 64 projects across a variety of sectors.
IFC significantly increased its investment program in Russia in the last
fiscal year (July 1, 2001 – June 30, 2002), investing $315 million in
20 projects worth $741 million. The rise of IFC activity reflects the improving
investment climate in Russia, greater opportunities in an increasingly
broad range of sectors, and a stronger foreign investor interest. IFC is
optimistic that these trends will continue, as Russia becomes a key country
in IFC’s global strategy.
The mission of IFC 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, helps
clients improve social and environmental sustainability, 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.