Hansa Capital Syndicated Leasing Finance Facility

Location:

Estonia

Project number:

6344

Business sector:

Leasing Finance

Notice type:

Private

Environmental category:

FI

Approval date:

08 Jun 1999

Status:

Completed

PSD disclosed:

06 May 1999

Project Description

Syndicated leasing finance facility of EUR 40 million under a standard A/B loan structure. The A loan for the EBRD’s own account is for a term of five years and the B loan for participant banks is for three years.

Project objectives: A syndicated loan will enable HC to expand its private sector leasing operations in Estonia, Latvia and Lithuania.

Transition Impact

s the largest provider of leasing and factoring services in the Baltic states, HC is an important institution in the local market with a strong commercial orientation and a reputation for good client service. To expand its leasing operations, HC has decided to tap the syndicated loan market in order to raise money to support its growth. The project will have an impact on the transition by providing local small and medium-sized enterprises with alternative sources of bank lending.

The Client

AS Hansa Capital (HC) is the leading provider of leasing and factoring services in the Baltic states. HC is a 100 per cent subsidiary of AS Hansapank. HC will on-lend the proceeds of the loan to its leasing subsidiaries in Estonia, Latvia and Lithuania.

EBRD Finance

The syndication was launched for an amount of EUR 30 million, with the EBRD taking EUR 10 million and joint-arrangers, Commerzbank AG (CB) and Deutsche Bank AG (DB), fully underwriting the EUR 20 million B loan.

However, as the initial loan was over-subscribed by the participating banks under the B loan, the facility was increased pro rata to EUR 40 million, therefore raising the EBRD's exposure to EUR 13.4 million.

Project Cost

EUR 40 million, a third of which is financed by the EBRD.

Environmental Impact

HC will carry out its operations in accordance with the EBRD's Environmental Procedures for Leasing. These provide for the integration of environmental due diligence into HC's credit appraisal processes and a requirement that lessees comply, at a minimum, with national and local health and safety and environmental regulations and standards and public consultation requirements. HC will submit annual environmental reports to the EBRD

Technical Cooperation

None

 

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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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