IFC will extend Megalogix Ltd. a $150m syndicated loan. The estimated cost of the project is approximately $150 million. IFC is considering a $35 million A loan and a $5 million C loan for IFC’s own account, and a syndicated $55 million B loan to the borrower.
Megalogix Ltd. (Megalogix) is a company established to develop an integrated network of class A warehouses in up to 20 cities across Russia and major cities of CIS. Megalogix is a 50/50 joint venture of:
- Raven Russia Limited (Raven), a sponsor of an existing IFC client in Ukraine, CJSC Logistics Center Kalyinivka, and
- Avalon Group (Avalon), one of the leading Russian distributors of fast-moving consumer goods (FMCG). The proposed investment is part of the above mentioned large scale initiative of Megalogix and involves the construction of a class A warehouse facility of approximately 103,000 square meters (m²) in the south of Novosibirsk.
Novosibirsk is a frontier region of Russia with income per capita of less than half of national average and suffering from severe shortage of warehousing capacity. The project will be implemented through a 100% subsidiary of Megalogix (Logopark Ob or the borrower) in Russia, incorporated solely for the purpose of the project implementation. The project will address the undersupply of quality warehouse space in Novosibirsk and is part of the Megalogix’s overall strategy to become one of the leading warehousing service providers in Russia.
The site for Logopark Ob is located in the south of Novosibirsk close to M51 highway, which connects the city with Moscow, and is less than three km away from the city trading and commercial zone.
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