Rosbank Leasing SME Loan

Location:

Russia

Project number:

45318

Business sector:

Leasing Finance

Notice type:

Private

Environmental category:

FI

Target board date:

16 Oct 2013

Status:

Repaying

PSD disclosed:

13 Sep 2013

Translated version of this PSD: Russian

Project Description

The EBRD is considering granting a senior loan of RUB 500 million to Rosbank Leasing Ltd. (“RB Leasing”, “RBL”). The loan will be used to make RUB denominated leases available to SME borrowers in Russia.

Transition Impact

The project will contribute to the increase of competition in and the expansion of the under-penetrated leasing market in Russia, which is currently dominated by local banks or state-owned leasing companies. Scarcity of available medium to long-term funding to SMEs, particularly in the regions, creates a challenge for capital investments. RBL is well equipped to reach SME borrowers by virtue of its extensive regional presence via Rosbank’s branch network, knowledge of local borrowers, strong underwriting procedures and strategic focus on the development of this business segment. The proposed transaction will support RBL’s plans for SME leasing development, and in particular will promote regional expansion.

The Project will also support the implementation of a new business strategy for RBL which intends to develop a self-sustained business with a focus on greater portfolio and funding diversification and independence. This will foster the transition of a viable market player into an increasingly SME-focused leasing company with gradually improved funding structure and less dependence on parental funding.

The Client

Rosbank Leasing Ltd. is a universal leasing company focusing primarily on equipment and transport leasing. RBL is 100% owned by Rosbank, itself 82% owned by Société Générale Group, France. As of end-1HY13, RBL’s total assets amounted to USD 185.4 mln.

EBRD Finance

RUB 500 million (an equivalent of EUR 12 million).

Project Cost

RUB 500 million.

Environmental Impact

Categorised FI: Rosbank Leasing Ltd. will be required to comply with EBRD's PR 2 and PR 9, implement the EBRD's E&S Procedures for Leasing and submit annual reports on environmental and social matters and the implementation of the PRs to the Bank.

Technical Cooperation

None.

Company Contact

Pavel Levskoy, CFO
www.rosbank-leasing.ru

 

Business opportunities

For business opportunities or procurement, contact the client company.

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