IKEA to Open Bank in Russia – Paper

Sweden’s IKEA, the world’s largest home furnishing products seller, is to open its own bank in Russia, Kommersant business daily reported on Friday quoting market sources.

The deal will be implemented by Ikano Group, which used to be part of IKEA group, and Credit Europe Bank N.V., which currently cooperates with IKEA in a joint venture on a parity basis.

Ikano’s branch in Russia declined to comment, while Credit Europe Bank Russia confirmed the information to the paper, saying the equity capital of the new bank would amount to 300 million rubles ($10.2 million).

The new bank, scheduled to be launched in 2013, will work with corporate clients of IKEA in Russia and its partners at first, and two year after will start to offer customer credit in IKEA stores, the source told Kommersant.

“The setup of the bank on a parity basis will allow the Swedish company to cut initial expenses in banking product development and benefit from the successful entrance of Credit Europe Bank to the Russian market,” Yulia Shirokova of NEO Center consulting group told the paper.

 

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