OREANDA-NEWS. October 15, 2010. IFC, a member of the World Bank Group, is helping Transcapitalbank, a midsize Russian bank and leader in trade finance, hedge currency and interest-rate risks to make the bank's operations more sustainable and expand its local-currency lending program.

IFC and Transcapitalbank have executed the first USD 30 million local-currency swap transaction under an agreement signed in June 2010. The bank hedged its exposure to U.S.-dollar borrowings, allowing it to lend in Russian rubles to its small and medium client companies.

"Today, Russian companies prefer taking loans in rubles to avoid the risks of foreign currency borrowing," said Olga Gryadovaya, Chairperson of Transcapitalbank. "We are grateful to IFC for its support and pleased to expand our cooperation into this new area."

Snezana Stoilikovic, IFC Director for Eastern Europe and Central Asia, said, "We place great importance on helping our clients improve their sustainability and mitigate risks, including currency and exchange-rate risks that remain significant in Europe and Central Asia. We are pleased to finalize our first swap transaction with Transcapitalbank, helping them expand access to local-currency financing for small businesses in the region."

Transcapitalbank became IFC client in May 2009, by joining IFC's Global Trade Finance Program. In only a year, the bank has become one of the program's most active participants in Europe and Central Asia.