|
EBRD supports Russian leasing market
€18.7 million financing package helps Estonian leasing business expand
A €18.7 million financing package from the European Bank for Reconstruction and Development is set to help a newly created subsidiary of Estonia's Hansa Capital, the largest leasing and factoring company in the Baltic states, develop its leasing operations into neighbouring Russia.
The EBRD's €2.7 million investment in Hansa Leasing Russia (HLR) - the subsidiary - together with a €16.0 million loan will help the company provide lease financing to "big ticket" clients in Russia, that include financing for the renewal of wagon stocks on the Russian railways and financing for port equipment. The Bank expects to provide the company with additional financing in 2003, to continue its support for HLR's expansion in Russia.
Jonathan Woollett, Director of non-banking financial institutions at the EBRD, said this greenfield project is part of the Bank's ongoing strategy to establish lease financing in its countries of operations. He said "big ticket" leasing is limited in the Russian market, and that by providing lease financing for larger transactions like the renewal of the Russian railway, an important gap is being filled.
The Bank's financing will also enable HLR to provide lease financing for port equipment. Mr Woollett added that this will help private port operators to offer higher levels of service, increasing the opportunities for Russian exports.
Hansa Leasing Russia is being created with the special purpose of expanding Hansa Capital's leasing services into Russia. Following the investment, the new company will be owned 25 per cent by the EBRD and 75 per cent by Hansa Capital, a 100 per cent owned subsidiary of Hansapank Group, the leading financial group in the Baltic states.
To date the EBRD has invested more than €4.5 billion in projects in Russia.
|
