SREI Leasing

Location:

Russia

Project number:

35700

Business sector:

Leasing Finance

Notice type:

Private

Environmental category:

FI

Approval date:

23 Jan 2007

Status:

Complete

PSD disclosed:

01 Sep 2006

Project Description

The proposed project consists in an equity investment in and debt financing to SREI Leasing Moscow, a subsidiary of SREI Infrastructure Limited, India. The EBRD funding will allow SREI Leasing Moscow to grow its leasing portfolio and reach more local small and medium companies in Russia. The company specialises in leasing of heavy equipment for construction and it intends to capture an important market share in this segment.

Transition Impact

The proposed project will support the establishment and growth of a foreign investor active in specialised lease finance in Russia. The project has, therefore, the potential to have a strong demonstration effect on other potential foreign investors showing the possibility to invest and grow in a challenging investment climate. By providing longer term finance, the project will support local small and medium enterprises operating in the construction sector. The entry of a world class player in the market is also like to increase competition resulting in improving product offer and inclusion of new customer segments into the lease financing business. More intense competition is also likely to improve the terms of finance available to clients.

The Client

SREI Leasing Moscow was established in September 2004 in Moscow by its parent, SREI Infrastructure Finance Limited, India, as a specialised leasing company acting in the area of heavy construction equipment finance.

SREI Infrastructure Finance Limited is the market leader in infrastructure finance in India with a market share of 30%. SREI Infrastructure Finance Limited is listed on the major Indian stock exchanges and on the London Stock Exchange through GDRs.

 

EBRD Finance

An equity investment of up to EUR 1.5 million to acquire 15% of the shares in SREI Leasing Moscow.

A loan of EUR 5 million to fund the growth of the leasing portfolio of SREI Leasing Moscow.

 

Project Cost

EUR 6.5 million.

 

Environmental Impact

SREI Leasing Russia will be required to adopt and implement the EBRD's Environmental Procedures for Leasing which includes adherence to the Bank's Environmental Exclusion and Referral Lists, compliance with the applicable national environmental, health and safety and labour requirements, and submission of an Annual Environmental Report to the Bank.

Technical Cooperation

None.

Company Contact

ZAO Srei Leasing

Rajesh Bhalotia, General Director
10B, Namyotkina Street,
Moscow 117420,
Russia

Tel +7 495 221 0124
Fax +7 495 331 3688

Website: www.srei.com, www.srei.ru,

Email: bhalotia@srei.ru

 

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

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