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

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Text of the PIP

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