SREI Leasing Senior Loan

Location:

Russia

Project number:

43314

Business sector:

Leasing Finance

Notice type:

Private

Environmental category:

FI

Target board date:

10 Jul 2012

Status:

Completed

PSD disclosed:

28 May 2012

Project Description

The EBRD is considering a Rouble denominated equity investment and loan to ZSL, a leasing company focusing on leasing of heavy equipment in the infrastructure sector. The Rouble denominated equity and loan will support the growth in equipment leasing, primarily in the regions beyond Moscow where SMEs stand to benefit most.

Transition Impact

The proposed equity and loan investment will contribute to expanding the leasing market in Russia, which is under-penetrated, and increasing competition in a sector that is dominated by local banks or state-owned leasing companies. Scarcity of available medium to long-term funding to SMEs, particularly in the regions, represents a challenge for capital investments. The provision of Rouble funding will improve local currency leasing to SMEs in Russia.

EBRD’s involvement will ensure high standards of corporate governance and business conduct in a sector which is not regulated. Furthermore, continued dispersion of know-how from the project’s Indian Sponsor will help to disseminate relevant industry skills.

The Client

ZAO SREI Leasing (ZSL) is an existing client of the Bank, which is a leasing company incorporated in Russia with a nation-wide coverage, focusing on leasing of heavy equipment in the infrastructure sector. ZSL is majority owned by SREI Infrastructure Finance Limited, a leading non-banking financial institution incorporated in India and listed on the London Stock Exchange.

EBRD Finance

A Rouble denominated senior loan and a capital increase pro-rata to EBRD’s shareholding.

Project Cost

The senior loan of up to Rouble 300 million (EUR 7.7 million) and an the equity investment of up to Rouble 56.6 million (EUR 1.4 million).

Environmental Impact

ZSL is an existing client of the Bank and will continue to comply with the EBRD’s Performance requirements for FIs (Performance Requirement 2 and 9) and submit annual environmental and social reports to the EBRD.

Technical Cooperation

None.

Company Contact

Rostyslav Futalo, General Director

Barklay St., 6, bld. 3, Moscow-121087
Russian Federation

Tel: +7 (495) 221-01-24
Email: futalo@srei.ru

 

Business opportunities

For business opportunities or procurement, contact the client company.

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