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Syndicated loan under EBRD umbrella boosts Baltic States private sector
To encourage the growth of small and medium sized enterprises (SMEs) in the Baltic states, the European Bank for Reconstruction and Development (EBRD), Commerzbank Aktiengessellschaft, and Deutsche Bank AG, have jointly arranged a syndicated loan of EUR 40 million to AS Hansa Capital, a leading regional financial institution based in Estonia. The EBRD will provide EUR 13.4 million for its own account, and a group of commercial banks will provide EUR 26.6 million.
"Thanks to the successful partnership between the joint-arrangers of this financing, 12 banks from eight countries are participating in the syndicated loan," said Tero Halmari, Senior Syndications Officer at the EBRD. "The loan’s success will now be judged by the impact it will have on the region, which we anticipate will be high. Because most companies in the Baltics qualify as SMEs, providing reliable support to the SME sector is essential to assist in the region’s development. The project will also improve employment opportunities and reduce regional differences in economic development. Leasing provides an additional means of financing to SMEs, that will help to strengthen private sector development in Estonia, Latvia and Lithuania."
Matthias Gaab, Head of Syndications at Deutsche Bank, said: "The August 1998 financial and political crisis in Russia had a major impact on market stability across the region. The international investors’ perception of all eastern European markets dramatically deteriorated, even if some financial sectors had a manageable exposure to Russia. Today’s syndication is an encouraging sign that confidence in the region is returning."
Per Fisher, Senior Vice President of Commerzbank, said: "The successful over-subscription enabled us to increase the loan amount from EUR 30 million to EUR 40 million. This clearly demonstrates the syndication market's growing confidence in the Baltic region and in its financial institutions."
Mr Mart Tooming, Chairman of the Board of Hansa Capital, said: "This syndicated loan is an important part of Hansa Capital's funding plans this year. It ensures our stable development and leading position in the Baltic leasing market. We appreciate this demonstration of trust towards the Baltic Region and especially towards Hansapank group."
Based in Estonia, Hansa Capital is a fully owned subsidiary of Hansapank, the largest financial institution in the Baltic states. Hansa Capital offers its clients both financial and operating leases on commercial vehicles, real estate, industrial equipment, cars and agricultural machinery. With 17 fully owned subsidiaries and nine other affiliated companies, Hansa Capital is the largest provider of leasing and factoring services in the Baltic states.
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