MICROCAPITAL BRIEF: International Finance Corporation Loans $29m to Center-Invest Bank to Support Small Businesses in Southern Russia

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has agreed to loan RUB 900 million (USD 29 million) to Center-Invest Bank, a Russian private bank, to increase lending to small and medium-sized enterprises (SMEs) in southern Russia. Additional details of the deal have not been released.

Since 2002, IFC has provided Center-Invest Bank approximately USD 40 million in debt finance and advisory services to support its “sustainable banking business model,” which focuses on SMEs, women in business, start-ups, young entrepreneurs, education and energy efficiency [1].

For the year 2011, Center-Invest Bank reported total assets of RUB 54.5 billion (USD 1.81 billion) [2]. As of 2012, IFC reported total assets of USD 75.7 billion.

By Brendan Millan, Research Associate

About International Finance Corporation (IFC)
The International Finance Corporation (IFC), a 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. As of 2012, IFC reported total assets of USD 75.7 billion.

About Center-Invest Bank
Founded in 1992, Center-Invest Bank is a Russian private bank focusing on the southern regions of the country. The bank operates 140 branches in southern Russia. For the year 2011, Center-Invest Bank reported total assets of RUB 54.5 billion (USD 1.81 billion).

Sources and Additional Resources:

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

[2] Center-Invest Bank: “Annual Report 2011”, http://www.centrinvest.ru/pdf/CI_2011report_en3.pdf

MicroCapital.org story, February 5, 2013, “International Bank for Reconstruction and Development (IBRD) to Loan $20m for Russian Government’s Microfinance Development Program”, https://www.microcapital.org/microcapital-brief-international-bank-for-reconstruction-and-development-ibrd-to-loan-20m-for-russian-governments-microfinance-development-program/

MicroCapital.org story, 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.org story, September 13, 2011, “International Finance Corporation (IFC) to Loan $10m to Metcombank of Russia for On-Lending to Small and Medium-sized Enterprises (SMEs)”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-loan-10m-to-metcombank-of-russia-for-on-lending-to-small-and-medium-sized-enterprises-smes/

MicroCapital.org story, April 20, 2010, “European Bank for Reconstruction and Development (EBRD) to Provide $18.5m Loan to NBD Bank, a Commercial Bank in Russia that Specializes in Lending to Micro, Small, and Medium-Sized Enterprises (MSMEs)”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-provide-185m-loan-to-nbd-bank-a-commercial-bank-in-russia-that-specializes-in-lending-to-micro-small-and-medium-size/

MicroCapital Universe Profile: International Finance Corporation (IFC),

MicroCapital Universe Profile: Center-Invest Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Center-Invest+Bank

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