MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $29m to Center-Invest Bank (CIB) of Russia for On-lending to Small, Medium-sized Enterprises (SMEs) in Southern Russia

The International Finance Corporation (IFC), the private investment arm of the World Bank Group, has loaned RUB 900 million (USD 29 million) to Center-Invest Bank (CIB), a Russian commercial bank, for on-lending to small and medium-sized enterprises (SMEs) in southern Russia. Through this partnership, CIB and IFC aim to support economic growth and private-sector development in the less developed regions of southern Russia. IFC has provided CIB with approximately USD 40 million in debt financing since 2002. Information regarding the terms of the new loan has not been released.

CIB began operations in 1992 and reported net assets of RUB 62.7 trillion (USD 1.9 billion), deposits of RUB 44 trillion (USD 1.3 billion) and a return on equity of 16 percent as of 2012. IFC has 182 member countries and reported total assets of USD 77.5 billion and return on assets of 1.3 percent as of fiscal year-end 2013.

By Meraj Husain, Research Associate

About Center-Invest Bank (CIB)

The Center-Invest Bank (CIB) is a financial institution headquartered in the Russian city of Rostov-on-Don. The bank began operations in 1992. As of 2014, shareholders include UK-based financial institution European Bank for Reconstruction and Development, German development finance institution Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG), the bank’s founders Dr Vasily Vysokov and Mrs Tatiana Vysokova, and other investors. It aims to finance small and medium-sized enterprises by providing services including cash settlement, loans, deposits, securities, leasing options, trade finance and payroll processing. In 2012, CIB reported net assets of RUB 62.7 trillion (USD 1.9 billion), deposits of RUB 44 trillion (USD 1.3 billion) and a return on equity of 16 percent.

About International Finance Corporation (IFC)

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. The IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

Sources and Additional Resources

[1] International Finance Corporation: “IFC, Center-Invest Bank Expand Access to Finance for Small Businesses in Southern Russia,” http://ifcext.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/12A9C7A68A714C7B85257B160030AD2B

MicroCapital, May 2, 2013, “European Bank for Reconstruction and Development (EBRD) Launches $100m Credit Line for Russian Residential Energy Efficiency Improvements, Center-Invest Bank Borrows $24m,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-launches-100m-credit-line-for-russian-residential-energy-efficiency-improvements-center-invest-bank-borrows-24m/

MicroCapital, February 20, 2013, “International Finance Corporation Loans $29m to Center-Invest Bank to Support Small Businesses in Southern Russia,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-loans-29m-to-center-invest-bank-to-support-small-businesses-in-southern-russia/

MicroCapital, April 5, 2012, “International Finance Corporation (IFC) Loans $10m to NBD Bank of Russia to Support Small Businesses”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-10m-to-nbd-bank-of-russia-to-support-small-businesses/

MicroCapital Universe Profile: International Finance Corporation (IFC)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: Center-Invest Bank (CIB) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Center-Invest+Bank+%28CIB%29

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