RZB Russia

completed

Raiffeisenbank Austria was established in 1996 and has become one of the leading retail banks in the country with a solid reputation and a strong retail franchise. As of December 2002, the bank ranked among the top 20 Russian banks in terms of assets (approximately $1.6 billion). Raiffeisenbank Austria’s equity amounted to approximately $133 million on December 18, 2002. The bank’s main areas of activity are corporate, retail, and investment banking. Raiffeisenbank Austria views mortgage finance as one of its strategic priorities and has been marketing this product actively on the market.By providing the credit line to the bank, IFC will help Raiffeisenbank Austria expand its funding base, match its maturity needs, and enable it to provide long-term funds for mortgage finance, a sector that has an acute need for term financing. In addition, the credit line would have a strong developmental impact on the still nascent Russian housing finance industry. The proposed financing would cement IFC’s strong global partnership with RZB in Central and Eastern Europe, and further extend this cooperation to Russia. This project is also a part of IFC’s overall strategy to promote the development of the housing finance sector in Russia.