Moscow, August 5, 2005 — The
International Finance Corporation (IFC), the private sector financing arm
of the World Bank Group, recently made a US$6 million equity investment
in DeltaCredit Bank, the first dedicated mortgage bank in Russia, specializing
in the origination and servicing of residential mortgages in Moscow, St.
Petersburg and other regions of the Russian Federation.
This equity investment represents IFC’s continued commitment to and vote
of confidence in DeltaCredit Bank as a leading private-sector institution
in providing mortgage loans to Russian citizens. DeltaCredit Bank
has established a successful track record in originating over US$200 mln.
in quality mortgage loans throughout Russia since it started its mortgage
lending operations in 2001. In addition to the recent equity investment,
IFC has provided approximately US$50 million in debt financing to DeltaCredit
Bank since 2002.
“Delta Private Equity Partners has and continues to be one of IFC’s long-standing
investment partners in Russia”, commented Mr. Edward Nassim, IFC Director
for Central and Eastern Europe. “IFC is very pleased to participate in
the equity of DeltaCredit Bank, an institution that has been at the forefront
of the primary mortgage market development and promotion of international
mortgage lending “best practices” in Russia. We believe that IFC’s
investment will provide the Bank with additional capital support as it
continues to broaden its regional presence in the mortgage lending markets
in Russia”, added Mr. Nassim.
Patricia M. Cloherty, Chairman and CEO of Delta Private Equity Partners
notes, “An equity investment from such a prominent institution as IFC
is evidence of the success that DeltaCredit has attained thus far and the
potential that exists for future growth. IFC’s investment will support
DeltaCredit’s efforts to provide mortgage lending of the highest quality
to families in Russia…”
"The equity investment from IFC is yet another confirmation from one
the Bank's longest-standing partners that DeltaCredit's fundamental elements
of success - its business model focused on high quality mortgage lending,
service level leadership, and controlled growth - are producing the results
that are able to attract the most demanding international investors,"
commented Igor Kouzin, Chairman and CEO of DeltaCredit Bank
Delta Private Equity Partners is a leading private equity manager dedicated
to developing and funding emerging growth companies in Russia that possess
the potential to become market leaders. It has invested about $300
million in 44 Russian companies through The U.S. Russia Investment Fund
established in 1994 and through Delta Russia Fund, a successor private
fund set up in 2004. More information is available on www.dpep.com.
DeltaCredit Bank, founded by “The US Russia Investment Fund”, is
the leading domestic mortgage lender in the Russian Federation. It has
developed innovative mortgage products aimed at satisfying diverse housing
needs of the Russian people. The volume of mortgage loans originated by
the Bank in Russia exceeds $200 million. To learn more about DeltaCredit
Bank and its mortgage programs visit the bank’s web site at www.deltacredit.ru
International Finance Corporation (www.ifc.org).
Russia joined IFC in 1993. Since then, IFC has committed $2.4 billion in
the country, including $245 million in syndicated loans, to finance more
than 100 projects across a variety of sectors. IFC’s portfolio in
Russia stands at approximately $1.7 billion. Currently, Russia is the largest
country exposure in IFC’s global portfolio. IFC’s investments spread
across the country’s most important sectors including banking, leasing,
housing finance, infrastructure, mining, agribusiness, pulp and paper,
construction materials, oil and gas, telecommunications, information technologies,
retail, and health care.
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. From its founding
in 1956 through FY04, IFC has committed more than $44 billion of its own
funds and arranged $23 billion in syndications for 3,143 companies in 140
developing countries. IFC’s worldwide committed portfolio as of
FY04 was $17.9 billion for its own account and $5.5 billion held for participants
in loan syndications.