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| Description of company and purpose of project |
Siberia Airlines was created in 1992 as a result of the reorganization of government-owned Aeroflot and privatized in 1994. Currently Siberia Airlines is the second largest Russian airline, after Aeroflot, and in 2003 carried about 3.5 million passengers. The company is based in Novosibirsk and provides scheduled and charter air transportation services both domestically and internationally.
The project involves a corporate loan of up to $25 million to refinance the existing short and medium-term loans of the company with the longer-term facilities. The company used these loans to finance acquisition and refurbishment of aircraft, to increase its working capital, and to expand its route network. |
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| Project sponsor and major shareholders of project company |
| The Siberia Airlines is majority owned by the top management of the company. The new management team took over control of the company in 1997, when Siberia Airlines was in financial distress and since then led the airline to become one of the largest and most efficient Russian carriers. |
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| Total project cost and proposed IFC investment |
| The proposed investment involves the IFC A Loan of up to $20 million and the IFC C Loan of up to $5 million to Siberia Airlines. |
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| Location of project and description of site |
| Siberia Airlines is headquartered in Novosibirsk, operates from main hubs in Novosibirsk, Moscow, and Irkutsk and provides transportation services to more than 50 destinations in Russia and abroad. |
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| Project Development Impact and IFC's Role |
The project is expected to contribute to the development of privately owned and operated Siberia Airlines, a leading Russian carrier. Access to long-term financing would play a positive role for Siberia Airlines, giving the company more financial flexibility and removing one of the major constraints on its further development.
IFC investment will demonstrate the viability of investments in the air transportation sector in Russia and play a catalytic role in attracting more foreign investments into this sector. IFC’s investment will send a positive signal to prospective foreign investors and give the company necessary exposure to international financial markets and technical partners. |
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| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects, because a limited number of specific environmental and social impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, and design criteria.
To view the environmental documents for this project, click here |
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| Location of environmental documents in locally affected community |
Environmental Review Summary is available at the Siberia Airlines’ corporate Bulletin Board on the following address:
Frunze 4, Novosibirsk, 630099, Russian Federation. |
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| To contact the project company, please write to: |
| Siberia Airlines Facsimile: +7 (383-2) 59-90-64 |
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