IFC invests in GAC Group

Infrastructure is a global priority for IFC and the $35 million loan to GAC will finance the Group's purchase of up to six supply vessels to support offshore oil rigs. Three vessels will operate in Kazakhstan, while the others will operate in Africa and the Middle East. GAC is one of the first international marine operators in the Caspian area. The company has more than 10 years of experience in the region, and is today the largest international operator in Turkmenistan.

Kazakhstan has been unable to exploit its large reserves of oil and gas largely because of a lack of infrastructure, support services, and equipment. Financing for new vessels and equipment has been difficult in the country and the wider region, as entry and exit costs are high, because the only route out of the area is frozen for up to six months of the year. The global financial crisis has exacerbated this challenge.

IFC's support for GAC will also help improve employment prospects in a number of emerging markets as the majority of the GAC Group's employees will be hired locally and will benefit from the company's training programs.