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EDC, EBRD and Raiffeisen develop leasing program for Russian market
(MONTREAL) – June 19, 2007 – Export Development Canada (EDC), the European
Bank for Reconstruction and Development (EBRD), and Raiffeisen Leasing
(Russia) today signed an agreement for an innovative USD 45 million leasing
program designed to facilitate purchases of equipment by small- to mid-sized
buyers in the Russian Federation from vendors located in Canada and other EBRD
member countries.
The agreement was signed by EBRD President and CEO Jean Lemierre and EDC
President Eric Siegel at the Conférence de Montréal in Canada. Mr. Siegel and
Mr. Lemierre underlined the broad advantages of the program that will offer
the unique opportunities of leasing in the Russian market and the strong
market position of Raiffeisen Leasing, one of Russia’s leading leasing
companies.
“Russian mid-tier markets are experiencing explosive growth, but are
constrained by lack of access to capital,” said Mr. Siegel. “At the same time,
exporters from Canada and elsewhere have been looking for a lease financing
mechanism that can help them serve this market. We tailored the program to
this specific market and scenario, and we believe that it will greatly help
develop opportunities for vendors.”
Mr Lemierre said that this unique framework had allowed the EBRD and its
partners to jointly assume the risk of direct lending to medium and
small-sized Russian clients, using leasing as a highly efficient financing
vehicle. “The EDC and the EBRD designed this framework together. We at the
EBRD look forward to working with the EDC and other lenders in the coming
months and years,” he added.
Transactions under the program will be financed jointly by EBRD and EDC (or,
in the case of non-Canadian transactions, a third financial institution), with
each lending 45 per cent. Raiffeisen Leasing will hold 10 per cent of the
risk. Among the aspects of the framework are expedited processing times for
lease proposals, standardized due diligence, and non-recourse of the lenders
to the borrower and the lessor (Raiffeisen Leasing).
The EBRD, owned by 61 countries and two intergovernmental institutions, aims
to foster the transition from centrally planned to market economies from
central Europe to central Asia.
Raiffeisen Leasing, a subsidiary of Vienna-based RZB, offers financial
leasing, mainly for industrial equipment and vehicles, to sectors including
construction, telecommunications and transport. Outlets are located in Moscow,
St. Petersburg, Ekaterinburg, Samara, Novosibirsk, Nizhni Novgorod, and
Krasnodar.
EDC is Canada’s export credit agency, offering innovative commercial solutions
to help Canadian exporters and investors expand their international business.
EDC’s knowledge and partnerships are used by 7,000 Canadian companies and
their global customers in up to 200 markets worldwide each year. EDC is
financially self-sustaining and is a recognized leader in financial reporting,
economic analysis and has been named one of Canada’s Top 100 Employers for six
consecutive years.
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