|
IFC Finances Modern Grocery Chain in Azerbaijan
In Washington, D.C.
Carmen Powell
Tel: (202) 473-4982
Email : cpowell@ifc.org
Baku, Azerbaijan, February 16, 2007
– IFC, the private sector arm of the World Bank Group, today signed agreements
to provide financing to the ADA Group, which operates Almali, the first
local food retail chain in Azerbaijan. This will help the company
provide consumers with the first modern and affordable grocery experience
in Azerbaijan. IFC’s $18 million investment, comprising a loan of
$12 million and equity/quasi-equity of $6 million, is the largest IFC financing
to the country’s non-oil sector. The investment will support the
ADA Group as it opens at least 50 grocery stores throughout Baku over the
next three years.
The few supermarkets in Baku today cater
mainly to expatriates and higher-income consumers who can afford premium
prices. The Almali stores will target middle and lower middle–income
consumers and help fill the gap between existing supermarkets and smaller
traditional markets. This will give consumers more choice, greater
convenience, and better access to quality goods, all at reasonable prices
and in a modern setting.
“IFC’s investment was crucial for
us to move forward with this exciting project, and we are glad to have
IFC as a long-term partner,” said Sergei Ivashkevich, Chairman of the
Supervisory Board of the ADA Group. “We see this project as complementing
Azerbaijan’s existing network of small traditional markets. We anticipate
that it will have trickle down effects as consumers purchase more goods,
because they will have more variety available at affordable prices,” he
added.
“Through this financing, IFC is supporting
a domestic company in its efforts to bring more grocery options to local
citizens across the income spectrum,” said Shahbaz Mavaddat, IFC’s Regional
Director for Southern Europe and Central Asia. “The project will create
over 2,000 jobs and develop linkages with local suppliers. This fits with
IFC’s strategy for Azerbaijan to create jobs while supporting market diversification
and the country's efforts to promote stronger supply and distribution networks
in an important part of the economy.”
“Almali will foster competition in
the food retail sector, and this will contribute to development of the
agricultural and food processing sectors in Azerbaijan,” said Dimitris
Tsitsiragos, Director of IFC’s Global Manufacturing and Services Department.
“IFC also plans to assist the ADA Group in attaining best retail industry
practices.”
About IFC:
IFC, the private sector arm of the World
Bank Group, promotes open and competitive markets in developing countries.
IFC supports sustainable private sector companies and other partners
in generating productive jobs and delivering basic services, so that people
have opportunities to escape poverty and improve their lives. Through FY06,
IFC Financial Products has committed more than $56 billion in funding for
private sector investments and mobilized an additional $25 billion in syndications
for 3,531 companies in 140 developing countries. IFC Advisory Services
and donor partners have provided more than $1 billion in program support
to build small enterprises, to accelerate private participation in infrastructure,
to improve the business enabling environment, to increase access to finance,
and to strengthen environmental and social sustainability. For more information,
please visit www.ifc.org.
|
|
|
