Delta Leasing Rouble Loan

Location:

Russia

Project number:

40275

Business sector:

Leasing Finance

Notice type:

Private

Environmental category:

FI

Target board date:

13 Apr 2010

Status:

Completed

PSD disclosed:

05 Feb 2010

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing a senior loan of RUB 480 million to DeltaLeasing, a leasing company operating in the Russian Far East, Siberia, the Urals and extending its regional presence to other Russian regions. The loan will consist of two equal tranches: the first tranche will be used for refinancing existing hard currency debt of the company and replacing it by Rouble borrowing and the second tranche will be used for financing new business and extending product offering.

Transition Impact

The transition impact potential of the Project arises mainly from its support of the important market participant with the ability to withstand the financial crisis. This transaction will have a strong demonstration effect as the first transaction with a leasing company in Russia after the crisis. Moreover, the proposed loan will improve the balance sheet structure of the company and allow it to mitigate its FX risk as well as extend its product offering and competitiveness.

The Project will strengthen the development of private companies in the economically challenged regions by promoting financial intermediation and increasing the level of available medium-term resources primarily to SME sector.

The Client

DeltaLeasing (“DL”), a Russian leasing company established in 1999 and owned by The U.S.-Russia Investment Fund (TUSRIF) (99.9% undiluted), with indirect participation of the company’s employees through employee stock-option plan (10.4% on fully diluted basis). The company is headquartered in the Far East, has wide regional presence nationwide, focusing on Siberia, Far East, the Urals and Central Russia. With the portfolio of USD 200 million, it was ranked number 23 by the size of its leasing portfolio as of end-September 2009.

EBRD Finance

Term loan of RUB 480 million (USD 16.7 million equivalent).

Project Cost

RUB 480 million (USD 16.7 million equivalent).

Environmental Impact

DeltaLeasing will be required to comply with EBRD’s Environmental Procedures for Leasing which require adherence to the Bank’s Environmental Exclusion and Referral List, compliance with the applicable national environmental, health and safety requirements and submission of an Annual Environmental Report to the Bank.

Technical Cooperation

None.

Company Contact

Mr. Gregory Sundstrom, Chairman
e-mail: gregorys@deltaleasing.ru

Mr. Oleg Rakitsky, CEO
e-mail: rakitsky@deltaleasing.ru

Telephone: 4232 – 491221
Fax: 4232-491220
Website: www.deltaleasing.ru

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.