IFC to Boost Raiffeisen International’s Housing and Energy Efficiency Financing in Southeastern Europe
In Washington, DC:
Rita Jupe
Phone: +1 (202) 458-8967
E-mail: Rjupe@ifc.org
Washington, D.C., July 12, 2006—The
International Finance Corporation, the private sector arm of the World
Bank Group, has signed three agreements to provide €35 million ($43 equivalent)
in long term funds to support the development of housing finance and energy
efficiency finance products of Raiffeisen International Bank-Holding AG
subsidiary banks in Bosnia and Herzegovina, Kosovo, and Serbia.
IFC loans amounting to €15 million and CHF 15.5 million respectively
will enable Raiffeisen Bank d.d. Bosna i Hercegovina and Raiffeisenbank
a.d. Beograd in Serbia to continue to grow their mortgage lending programs
and develop innovative products such as loans for energy efficient projects
in Bosnia and Herzegovina.
IFC’s loan to Raiffeisen Bank Kosovo J.S.C. in the amount of €10 million
will support the bank’s small and medium size business line and the launch
of its residential housing finance program. IFC’s investment is
expected to have a significant developmental impact by strengthening the
emerging housing finance sector in Kosovo, expanding home ownership in
Bosnia and Herzegovina and Serbia, and reducing energy consumption and
pollution.
Shahbaz Mavaddat, IFC’s director for Southern Europe and Central Asia
said, “Working with Raiffeisen International in this new way, through
its subsidiary banks in Southern Europe, we expect to broaden and deepen
financial intermediation in the frontier markets of Bosnia and Herzegovina,
Kosovo, and Serbia.”
IFC is keen on seeing significant development in both the primary mortgage
and energy efficiency markets in Southern Europe.
“IFC is pleased to partner with the Raiffeisen Group to develop its housing
finance activities in Kosovo and its energy efficiency products in the
region,” said Jyrki Koskelo, IFC’s director for Global Financial Markets.
“This is IFC’s first energy efficiency credit line, providing funding
and product development support to a well established institution in Bosnia
and Herzegovina. We believe energy efficiency finance has tremendous
potential in the region and look forward to replicating this project in
other countries.”
Herbert Stepic, CEO of Raiffeisen International, said, “Our comprehensive
branch network makes us an ideal partner for the IFC to accomplish its
mission in South Eastern Europe and are able to distribute the funds provided
by the IFC to SMEs and consumers. We are glad to add three more agreements
to our long-lasting and successful cooperation with the IFC.”
About Raiffeisen International
Raiffeisen International operates one of the leading banking networks
in CEE with subsidiary banks and leasing companies in 16 markets. More
than 10 million customers are attended through 2,700 business outlets.
In eight markets, the respective Network Bank ranks among the three largest
local banks. Representative offices in Lithuania and Moldova complement
the Group's presence in the region. Raiffeisen International is a fully
consolidated subsidiary of Raiffeisen Zentralbank Österreich AG (RZB),
which owns 70 per cent of the common stock. The remaining 30 per cent is
free float, the shares are traded on the Vienna Stock Exchange. RZB is
a leading corporate and investment bank in Austria and the central institution
of the Austrian Raiffeisen Banking Group, the country's largest banking
group. Raiffeisen International's balance-sheet total amounted to € 41.9
billion at the end of the first quarter 2006. Consolidated profit (after
minorities) increased by 34 per cent to € 124 million, compared with
the first quarter 2005.
About IFC
The mission of IFC is to promote sustainable private sector investment
in developing and transition 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 FY05, IFC has committed more than $49 billion of its own
funds and arranged $24 billion in syndications for 3,319 companies in 140
developing countries. IFC’s worldwide committed portfolio as of FY05 was
$19.3 billion for its own account and $5.3 billion held for participants
in loan syndications. For more information, visit www.ifc.org
|
