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22.07.05
The International Finance Corporation and Absolut Bank. have signed Multi Project Facility Agreement. The International Finance Corporation, the private sector arm of the World Bank Group, is investing $10 million equity in Absolut Bank and providing it with a $15 million mortgage loan.
IFC’s equity investment will strengthen Absolut Bank’s capital base and enable it to expand its operations in the Moscow region and in St. Petersburg. IFC’s loan will be used to expand the bank’s residential mortgage lending program in Russia.
“We are pleased to work with Absolut Bank, a middle sized Russian bank with increasing regional coverage and a strong market share. Through our partnership with the bank we contribute further to the development of the housing finance market – essential to Russia’s economic development and the well being of millions of Russians ,” commented Edward Nassim, IFC’s Moscow-based Director for Central and Eastern Europe. “This is our first project with the bank, which we see as the start of a long term relationship,.”he added.
Alexander Svetakov, Chairman of Absolut Bank’s Board of Directors, welcomed IFC as a new shareholder in Absolut Bank. “ The fact that this is only IFC’s second straight equity investment in a Russian Bank makes us proud. We are convinced that IFC’s equity participation will open new business opportunities for the bank worldwide.”
Nikolay Sidorov, Absolut Bank’s Chairman of the Management Board, said,”We are very satisfied that IFC is opening this long-term credit line, that will help us to develop our mortgage business in the Moscow and St. Petersburg regions. The due diligence has been very thorough but we benefited from the experience of IFC.”
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