IFC Financing Helps Belarusian Aluminum Producer Expand Exports
Minsk, Belarus, August 9, 2012—IFC, a member of the World Bank Group, has arranged a €45 million financing package for the Alutech Group, the largest private manufacturer of aluminum products in Belarus, to support the company’s growth and expansion of exports.
IFC provided a €25 million loan from its own account and mobilized another €20 million from Priorbank, a leading commercial bank in Belarus and a member of RZB Group. This is IFC’s second investment in Alutech.
“We are facing a growing regional market and opportunities in Europe,” said Alexei Zhukov, general director of the Alutech Group. “IFC’s financing will help us finance construction of a new production plant, consolidate positions in Belarus, Russia, and Ukraine, and expand into new markets.”
Alutech aluminum products are widely used in industrial, residential and commercial real estate development. IFC’s financing for Alutech, which has more than 3,000 workers, will also indirectly support employment along the supply chain as small and medium enterprises are key distributors of Alutech’s final products.
“Our strategy for Belarus focuses on helping private sector players increase their competitiveness,” said Max Yacoub, head of IFC’s office in Belarus. “Our new project with Alutech will help it further modernize and enhance its transparency. We hope it will also encourage other investments in technologically-advanced companies in Belarus.”
Belarus joined IFC in 1992. IFC has been actively involved in advisory services in the country since 1993, and focuses its efforts on improving the country’s business environment and investment climate. IFC has also invested nearly $340 million in several projects in Belarus.