WIRTGEN

Location:

Russia

Project number:

33873

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

FI

Target board date:

01 Apr 2003

Status:

Completed

PSD disclosed:

26 Feb 2003

Project Description

Establishment of a €15 million leasing framework facility on a risk sharing basis among Wirtgen International GmbH (Wirtgen), owned by the German heavy machinery manufacturer Wirtgen Group, ZAO Raiffeisenbank Austria (Russia) and the EBRD.The facility will finance the acquisition of Wirtgen manufactured equipment by OOO Raiffeisen Leasing (a Russian subsidiary of Raiffeisen Leasing International (Vienna) and ZAO Raiffeisenbank Austria (Russia)), acting as a lessor, and then  leased to Russian companies (the lessees) modernising or expanding their fleet of road building machinery.

Transition Impact

The transition impact potential will be derived from the following: The project 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 bank financing and support the development of non-bank financial services;It will provide a model to other (potential) lessees and domestic leasing companies, in terms of corporate governance and financial standing;With several other leasing facilities being discussed with the various sponsors for their Russian subsidiaries and/or financing companies, the project will stimulate competition and provide value-added services to manufacturers and buyers of equipment;Finally, the project will facilitate provision of financing to small and medium sized companies, which in general lack access to affordable financing mechanisms.

The Client

The beneficiaries of the proposed financing will be Russian small and medium size road construction companies, end-users of Wirtgen equipment.

EBRD Finance

An uncommitted facility of up to €10 million extended to Raiffeisen Leasing to finance purchases of Wirtgen equipment under a Master Loan Agreement. Each lease under the facility will be financed through separately approved and disbursed sub-loans.

Project Cost

Up to €15 million

Environmental Impact

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. Wirtgen will be responsible for product quality assurance, maintenance and training of lessees. Wirtgen heavy machinery 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 vehicle emission regulations. Wirtgen 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

Wirtgen International GmbH
Mr Mathias Pichler, General Director
Tel: +49-2645-131157
Fax: +49-2645-131400
E-mail: sales-inter@wirtgen.de
OOO Raiffersen Leasing
Mr Dmitry Shabalin, General Director
Tel: +7 095 721-1341
Fax: +7 095 721-1343
E-mail: dshabalin@raiffeisen.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

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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.