MINING, CONSTRUCTION EQUIPMENT LEASING FACILITY, CATERPILLAR

Location:

Russia

Project number:

18765

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

FI

Target board date:

29 Jan 2002

Status:

Completed

PSD disclosed:

20 Dec 2001

Project Description

Establishment of a US$ 12 million leasing framework facility in Russia to finance leases of Caterpillar equipment on a risk sharing basis among Caterpillar, ZAO Raiffeisenbank Austria (RBA) and the EBRD. The Framework would finance leases of Caterpillar equipment to Russian companies. It is envisaged to replicate the framework with other equipment vendors in a wide variety of industries. This would benefit both the vendors and especially the ultimate lessees, who would have access to modern equipment and the means to finance it.

Transition Impact

  • It will support the expansion of the leasing market in Russia, which is critical for stimulating economic growth by providing an alternative to the rather undeveloped market for medium-term bank financing;
  • It will serve as a model to other (potential) lessees and domestic leasing companies in terms of corporate governance and financial standing – the EBRD integrity and corporate governance checklist will be incorporated into the lessee selection criteria;
  • At a later stage, the framework could be replicated for other Russian equipment manufacturers and leasing companies.

The Client

OOO Raiffeisen-Leasing, a subsidiary of ZAO Raiffeisenbank Austria (RBA) and Raiffeisen Leasing International, Vienna.
RBA, a commercial bank, which offers its clients a complete range of banking products for domestic and cross-border operations.
Caterpillar Inc., headquartered in Peoria, Ill., US, is the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines.

EBRD Finance

An uncommitted facility of up to US$ 8 million (€8.95 million) extended to Raiffeisen Leasing to finance the purchases of Caterpillar equipment under a Master Loan Agreement. Each lease under the facility would be financed through separately approved and disbursed sub-loans.

Project Cost

US$ 12 million (€13.4 million).

Environmental Impact

The environmental responsibilities associated with this financial intermediary operation are shared between Raiffeisen Leasing and Caterpillar:
 
Raiffeisen Leasing will conduct environmental due diligence on potential lessees in accordance with EBRD’s Environmental Procedures for Leasing; lessees will be required to comply, at a minimum, with applicable Russian health, safety and environmental regulations and standards.
 
Caterpillar will be responsible for product quality assurance, maintenance and training of lessees. Caterpillar machines in production today are designed in accordance with internationally recognised standards, reflecting state-of the art operator safety and environmental responsibility, including compliance with current and upcoming Stage II EU non-road emission regulations. Caterpillar’s maintenance contracts with lessees will ensure that machines maintain their high environmental and safety standards throughout the duration of the lease.

Technical Cooperation

None.

Company Contact

 

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.