The EBRD is further increasing the availability of financing to private businesses in Romania with a €30 million loan to Raiffeisen Leasing IFN S.A., Bucharest, a subsidiary of Austrian Raiffeisen Bank International AG (RBI), for onlending to small and medium-sized enterprises (SMEs).
The proceeds of the loan will be used to provide leases to private local companies to finance capital investments for the expansion of their businesses. Such capital investments include the acquisition of equipment, light commercial vehicles, trucks and trailers, as well as cars for commercial use.
The Romanian leasing market was severly affected by the global financial and economic crisis. The dramatic decline in leasing volume especially impacted the availability of leasing products for SMEs.
The credit line will support the revival of the leasing operations in Romania, also extending access to funding for local SME businesses that remain vulnerable to the persisting liquidity constraints.
Raiffeisen Leasing is one of the leading players on the Romanian leasing market, with SME financing accounting for more than 40% of the company’s portfolio. The company has been an EBRD client since 2003 under the EU/EBRD Leasing Facility. The new loan is the EBRD’s third financing deal with Raiffeisen Leasing in Romania, bringing the total loan amount extended to the company to €50 million.
“The EBRD has provided significant finance to the Romanian leasing sector in the past, and remains committed to supporting its further development. The operation will help Raiffeisen Leasing Romania to diversify its funding sources, and will also enhance access to a more flexible financing for small to medium sized private Romanian companies,” said Claudia Pendred, EBRD Director for Romania.
“Raiffeisen Leasing is dedicated to convey to Romanian SMEs confidence that they can access the necessary financing to develop their businesses. We are open to offer support to companies with a clear vision and business strategy, as well as viable business plans, relying on high quality management and experience in their industry,” said Felix Daniliuc, General Manager of Raiffeisen Leasing.
Since the beginning of its operations in Romania in 1992, the EBRD has committed over €5 billion to various sectors of the country’s economy which attracted an additional €9 billion of investments.
Raiffeisen Leasing is a member of the Austrian Raiffeisen Bank International Group and active on the Romanian market since 2002. Raiffeisen Leasing customers are mainly corporate, from SMEs to multinational corporations and municipalities. The company has national coverage, being present in 12 large cities in Romania. Leasing finance is available at all Raiffeisen Bank branches.
Raiffeisen Leasing is a member of the Financial Companies Association in Romania (ALB) since 2004.