IFC backs Russia's Center-Invest expansion

Russia’s Center-Invest is expanding its financing capabilities thanks to a package of loans from IFC.

The bank will be focusing on supporting residential energy efficiency financing in Russia, as well as expanding access to finance for small and medium-sized businesses in the country’s agribusiness sector.

The loan package consists of a Rb300mn loan (US$10mn-equivalent) for residential energy efficiency, Rb600mn (US$20mn-equivalent) loan to on-lend to small companies in the agribusiness sector in Southern Russia; and a US$10mn trade finance guarantee facility to expand foreign trade operations of the bank’s local small and medium-sized corporate clients.

Residential energy efficiency financing is a new financial product being developed by the bank in conjunction with IFC’s advisory services. The product entails the Russian bank providing loans to home owner associations and house management companies to finance energy efficient renovations of multi-occupancy buildings.

“Addressing climate change and supporting agribusinesses are global priorities for IFC,” comments Lars Thunell, IFC executive vice-president and CEO.

“We are pleased to work with Center-Invest Bank to expand financing for energy efficiency in Russia’s housing sector and to promote lending to underserved small and medium enterprises in the agriculture sector.”