OREANDA-NEWS. IFC, a member of the World Bank Group, will provide KuibyshevAzot, a leader in Russia's chemical industry, with USD 150 million in debt financing to support its expansion and modernization in order to make the company more competitive and boost economic development in Russia's Samara region.

The financing package consists of a USD 75 million loan for IFC's own account and a USD 75 million loan syndicated from three commercial banks. IFC's mobilization will help KuibyshevAzot diversify its funding sources and improve foreign investors' confidence in Russian industries.

“IFC is our long-term partner with global industry expertise and local knowledge,” said Victor I. Gerasimenko, CEO of KuibyshevAzot. “IFC not only supports us with much needed long-term financing, but also provides us with environmental and social technical expertise, helping us become more competitive and efficient.”

Since 2003, IFC has worked with KuibyshevAzot to support growth, enhance corporate governance, improve environmental and social practices, and implement resource and energy efficiency improvements. IFC has been a KuibyshevAzot shareholder since 2008, and has provided the company with debt financing before.

“This investment is in line with IFC's strategic priorities in Russia,” said Tomasz Telma, IFC Director for Europe and Central Asia. “It supports the expansion and modernization of production in an environmentally friendly way, introduces a key Russian company to new financial partners, and supports Russia's economic diversification by boosting production of higher value-added products.”

Russia became a member and shareholder of IFC in 1993. Since then, IFC has invested more than USD 11 billion in 294 projects across a variety of sectors, including USD 3.3 billion in syndicated loans and other forms of mobilizations. IFC's investment portfolio in Russia stands at USD 2.2 billion.