OREANDA-NEWS. February 21, 2013. IFC, a member of the World Bank Group, is providing a loan of 900 million Russian rubles (around USD29 million) to Center-Invest Bank to help it expand access to finance for small and medium enterprises in the Russia Federation’s southern regions.

The loan will help the bank increase lending to smaller businesses in less-developed frontier regions, helping create jobs and diversifying the local economy. This new financing builds on the long-term partnership between IFC and Center-Invest Bank that began in 2002.

“We are grateful for IFC’s long-term financial support and valuable advice, which help us provide our clients with innovative products,” said Vasily Vysokov, Chairman of Center-Invest Bank. “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 USD 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 USD 10 billion in Russia, including USD 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 USD 2.3 billion, the fourth-largest country exposure for IFC globally.