Summary of Proposed Investment
Project Number
11222
Company Name
IBS Group Holdings Limited
Date SPI Disclosed
Mar 29, 2002
Country
Russian Federation
Industry
Telecommunications and Technology
Projected Board Date
May 1, 2002
Status
Completed
Sector
Content (B2C Companies)
Department
TMT, Venture Capital & Funds
Environmental Category
B - Limited
Previous Events
Approved : Jun 6, 2002
Signed : Aug 2, 2002
Invested : Sep 26, 2002
Project Description
IBS'' primary focus is to meet all the IT needs of Russian companies and government agencies as well as international companies operating in Russia. IBS offers its clients consulting, design, implementation, support, maintenance, outsourcing and software programming services. In addition, IBS leverages multiple distribution channels to offer a portfolio of over 5,000 products from more than 100 of the world’s leading IT hardware brands. IBS’ comprehensive offering of services and products enables the company to provide turnkey IT solutions and a “one-stop-shop” to its clients. The purpose of IFC''s investment is to support the company in expanding its offshore programming services, management consulting services and local computer assembly business, which will allow IBS to increase margins and to offer higher value-added services to its clients.
IBS would be one of IFC’s first direct investment in a Russian technology firm. On a broad scale, IFC’s presence will help demonstrate to other potential investors that private equity financing is available for the technology sector in Russia. IFC will also provide funding with long-term maturities that are otherwise unavailable in the market. Without IFC’s presence, such financing would not be possible at reasonable rates or for the necessary maturities, particularly in light of the weakening appetite for technology projects and the perception that Russia country risk is still quite high. The project will also act as an important symbol of the benefits of continued reform in Russia.
The project will have a significant developmental impact by potentially creating IT related jobs in Russia. IBS will also contribute to the training of skilled technology workers in Russia by exposing them to best practices from world class technology firms.
IBS would be one of IFC’s first direct investment in a Russian technology firm. On a broad scale, IFC’s presence will help demonstrate to other potential investors that private equity financing is available for the technology sector in Russia. IFC will also provide funding with long-term maturities that are otherwise unavailable in the market. Without IFC’s presence, such financing would not be possible at reasonable rates or for the necessary maturities, particularly in light of the weakening appetite for technology projects and the perception that Russia country risk is still quite high. The project will also act as an important symbol of the benefits of continued reform in Russia.
The project will have a significant developmental impact by potentially creating IT related jobs in Russia. IBS will also contribute to the training of skilled technology workers in Russia by exposing them to best practices from world class technology firms.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Information Business Systems
9-b, Dmitrovskoe schosse
Moscow 127994
I-434, GSP-4, Russia.
9-b, Dmitrovskoe schosse
Moscow 127994
I-434, GSP-4, Russia.