Project description
and objectives:
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The proposed project consists in an equity investment in and debt financing to
SREI Leasing Moscow, a subsidiary of SREI Infrastructure Limited, India. The
EBRD funding will allow SREI Leasing Moscow to grow its leasing portfolio and
reach more local small and medium companies in Russia. The company specialises
in leasing of heavy equipment for construction and it intends to capture an
important market share in this segment.
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Transition impact:
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The proposed project will support the establishment and growth of a foreign
investor active in specialised lease finance in Russia. The project has,
therefore, the potential to have a strong demonstration effect on other
potential foreign investors showing the possibility to invest and grow in a
challenging investment climate. By providing longer term finance, the project
will support local small and medium enterprises operating in the construction
sector. The entry of a world class player in the market is also like to
increase competition resulting in improving product offer and inclusion of new
customer segments into the lease financing business. More intense competition
is also likely to improve the terms of finance available to clients.
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The client:
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SREI Leasing Moscow was established in September 2004 in Moscow by its parent,
SREI Infrastructure Finance Limited, India, as a specialised leasing company
acting in the area of heavy construction equipment finance.
SREI Infrastructure Finance Limited is the market leader in infrastructure
finance in India with a market share of 30%. SREI Infrastructure Finance
Limited is listed on the major Indian stock exchanges and on the London Stock
Exchange through GDRs.
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EBRD finance:
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An equity investment of up to EUR 1.5 million to acquire 15% of the shares in
SREI Leasing Moscow.
A loan of EUR 5 million to fund the growth of the leasing portfolio of SREI
Leasing Moscow.
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Total project cost:
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EUR 6.5 million.
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Environmental impact:
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SREI Leasing Russia will be required to adopt and implement the EBRD's
Environmental Procedures for Leasing which includes adherence to the Bank's
Environmental Exclusion and Referral Lists, compliance with the applicable
national environmental, health and safety and labour requirements, and
submission of an Annual Environmental Report to the Bank.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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ZAO Srei Leasing
Rajesh Bhalotia, General Director
10B, Namyotkina Street,
Moscow
117420,
Russia
Tel +7 495 221 0124
Fax +7 495 331 3688
Website: www.srei.com, www.srei.ru,
Email: bhalotia@srei.ru
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EBRD contact:
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Charles Smith, Operation Leader: smithc@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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