EuroLease Bulgaria - Senior Loan

Location:

Bulgaria

Project number:

40589

Business sector:

Leasing Finance

Notice type:

Private

Environmental category:

FI

Target board date:

25 Nov 2009

Status:

Completed

PSD disclosed:

09 Nov 2009

Project Description

The EBRD is considering providing a €10 million senior loan to EuroLease Auto Bulgaria for on-lending to SMEs as part of the Bank’s support of leasing sectors/SMEs affected by the liquidity crisis in SEE.

The EBRD finance will be in conjunction with a senior loan to EuroLease Auto from a Bulgarian commercial bank(s).

Transition Impact

The proposed project is part of EBRD’s overall response to the impact of the global financial crisis on the leasing sector and its effect on the SMEs sector in all Countries of Operation. Leasing companies, as non-depository financial institutions relying mostly on external funding to support their growth, have been severely affected by the liquidity crisis.

This investment will increase the provision of long-term funding available in the leasing sector to be channelled to SMEs and, therefore, allow an increasing number of private entrepreneurs to access lease financing for trade and services.

The Client

EuroLease Auto Bulgaria (the “Company”) is specialized in the leasing of brand new passenger and commercial vehicles, predominantly to SMEs. It has been the largest and fastest growing non-bank affiliated leasing company in Bulgaria. Founded in 2004, EuroLease Auto is part of EuroHold Bulgaria (the “Parent”), a publicly listed holding with diversified operations in insurance, leasing, financial services, car brokerage, and manufacturing.

EBRD Finance

A senior loan in the amount of €10 million.

Project Cost

€15 million.

Environmental Impact

EuroLease Auto will be required to comply with EBRD’s Environmental Performance Requirement (“PR”) 9 when making local leases and will be required to conduct its business in accordance with PR 2. The Company’ will be required to comply with applicable national environmental, health and safety and labour requirements, adhere to the EBRD's Environmental and Social Exclusion and Referral Lists, and submit annual environmental and social reports to the Bank.

Technical Cooperation

None

Company Contact

Stoil Vasilev
Manager Business Development
EuroLease Group
43, Christopher Columbus Blvd.
1592 Sofia, Bulgaria

Tel: +359 2 4897 513
E-mail: s.vasilev@eurohold.bg
Website: www.eurohold.bg

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

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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.