Alliance Oil Co.

completed

_x000C_Alliance Oil Company (AOC or the company) is a mid-sized, Russian oil company with a focus on downstream petroleum operations in Russia, Ukraine, and Kyrgyzstan. The company owns two petroleum refineries, one in Khabarovsk (Far East Russia) and another one in Kherson (Southern Ukraine). Geographically centered around these two refineries, AOC operates an integrated logistics, wholesale, and retail distribution network for petroleum products, including three marine export terminals. The company also participates in an exploration and extraction license in Kazakhstan and is bidding on a number of crude production assets in Russia. IFC’s loan will be used to support the company’s 2005/2006 capital investment budget, which amounts to about $100 million. It includes investments in the expansion of the company’s retail network, refinery modernizations, expansion of logistics infrastructure, and geological exploration. IFC’s corporate loan will be the first long-term loan facility of the company, which currently relies exclusively on internal cash-flow generation and external short-term funding.