IFC, a member of the World Bank Group, will invest up to €150 million in Raiffeisen Bank International (RBI) with financing channeled to the bank’s subsidiaries in Central and Eastern Europe to promote economic recovery and growth in the region.
RBI subsidiaries in Bosnia and Herzegovina, Kosovo, Poland, and Russia will benefit from IFC’s investment in RBI’s capital increase. IFC’s final investment amount will be confirmed when the transaction closes, and is expected to contribute to improved access to finance and stronger private enterprise in the region.
“IFC’s participation in our capital increase is a strong signal of confidence in our bank and underlines IFC’s commitment to supporting economic growth and recovery in Central and Eastern Europe,” said Karl Sevelda, CEO of RBI.
Countries in emerging markets were hit hard by the global financial and Eurozone crises, and were affected by some Western European banks shedding assets. IFC’s financial markets strategy in Eastern Europe is driven by the importance of stable banks in the region and is focused on delivering targeted investment and advisory services to support economic growth and job creation.