Project description
and objectives:
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Syndicated leasing finance facility of EUR 40 million under a standard A/B loan structure. The A loan for the EBRD’s own account is for a term of five years and the B loan for participant banks is for three years.
Project objectives: A syndicated loan will enable HC to expand its private sector leasing operations in Estonia, Latvia and Lithuania.
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Transition impact:
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s the largest provider of leasing and factoring services in the Baltic states, HC is an important institution in the local market with a strong commercial orientation and a reputation for good client service. To expand its leasing operations, HC has decided to tap the syndicated loan market in order to raise money to support its growth. The project will have an impact on the transition by providing local small and medium-sized enterprises with alternative sources of bank lending.
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The client:
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AS Hansa Capital (HC) is the leading provider of leasing and factoring services in the Baltic states. HC is a 100 per cent subsidiary of AS Hansapank. HC will on-lend the proceeds of the loan to its leasing subsidiaries in Estonia, Latvia and Lithuania.
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EBRD finance:
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The syndication was launched for an amount of EUR 30 million, with the EBRD taking EUR 10 million and joint-arrangers, Commerzbank AG (CB) and Deutsche Bank AG (DB), fully underwriting the EUR 20 million B loan.
However, as the initial loan was over-subscribed by the participating banks under the B loan, the facility was increased pro rata to EUR 40 million, therefore raising the EBRD's exposure to EUR 13.4 million.
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Total project cost:
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EUR 40 million, a third of which is financed by the EBRD.
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Environmental impact:
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HC will carry out its operations in accordance with the EBRD's Environmental Procedures for Leasing. These provide for the integration of environmental due diligence into HC's credit appraisal processes and a requirement that lessees comply, at a minimum, with national and local health and safety and environmental regulations and standards and public consultation requirements. HC will submit annual environmental reports to the EBRD
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Technical
cooperation:
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None
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Anatoly Crachilov, Operation Leader: crachila@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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