IFC Partners with Belgrankorm to Expand Agribusiness in Russia
Moscow:
Nezhdana Bukova
Phone: + 7 (495) 411 7555 ext 2026
E-mail: nbukova@ifc.org
Washington, D.C.:
Irina Likhachova
Phone: +1 (202) 473 1813
E-mail: ilikhachova@ifc.org
Moscow, May 29, 2008—IFC,
a member of the World Bank Group, is supporting Belgrankorm Group, a leading
crop and meat producer in Russia, to increase the company’s production
capacity and introduce best practices in corporate governance and environmental
and social sustainability.
IFC’s $50 million in equity will help Belgrankorm modernize and expand
its poultry, pig, dairy farms, and processing facilities in the Belgorod
region. This will help the company double its meat and milk production
and purchase new farm machinery to cultivate more land to boost grain production.
IFC’s investment will also support a new poultry project and help build
a feedmill in the Veliky Novgorod region. IFC also will provide the company
with $30 million long-term debt.
As a partner and shareholder, IFC will advise Belgrankorm on corporate
governance, international financial reporting standards, and environmental
and social management systems. IFC will also help the company improve livestock
performance by introducing best practices in veterinary, nutrition, and
livestock management.
“We welcome IFC as a new shareholder and financier. This strategic partnership
serves as recognition of our company and growth strategy. It will spur
our development and support our commitment to implementing international
standards of doing business,” said Alexander Orlov, owner of Belgrankorm.
“The agribusiness sector is a strategic priority for IFC. We are delighted
to work in partnership with Belgrankorm and help expand the company's production
capacity by using modern technologies that maximize efficiency and apply
highest environmental and food safety standards,” said Oscar Chemerinski,
IFC Director for Agribusiness.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC's
vision is that people should have the opportunity to escape poverty and
improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through syndications and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.
Russia became a member and a shareholder of IFC in 1993. Since then
IFC has invested over $3.6 billion in the country, including $527 million
in syndicated loans, in more than 150 projects across a variety of sectors.
IFC’s investment portfolio in the country currently stands at $2.24
billion, making it the largest country exposure for IFC globally. IFC
has invested in key sectors including banking, leasing, housing finance,
infrastructure, mining, agribusiness, pulp and paper, construction materials,
oil and gas, telecommunications, information technologies, retail, and
health care. For more information, visit www.ifc.org/europe.
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