Project description
and objectives:
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The proposed project consists of a secured multicurrency loan to a leasing
company Promsvyazleasing (PSL). The Loan can be convertible into up to 10% of
the common stock equity. The Loan will finance leases made to local companies
operating across a variety of industries. The main objective of the project
is to support PSL’s further expansion by providing long-term debt facility,
diversifying the Company’s funding base and assisting its efforts to develop
its leasing portfolio in Russia.
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Transition impact:
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The transition impact potential of this project arises mainly from its support
to the development of the Russian leasing sector and the subsequent increase
in the financial sector intermediation which is still at a comparatively low
level. In addition, the project will support a wider application of the
internationally acceptable leasing practice in Russia and promote competition
in the leasing sector. The Project is consistent with EBRD’s transition
mission because it:
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improves the availability of leasing in Russia and particularly in the regions
(the Company has a strong position in the regional markets, most prominently
in the southern and Siberian regions; the new strategy envisages close
cooperation with the affiliated company Oranta, which is present in most of
the Russian regions); and
-
improves access of financial leasing to SMEs in Russia by virtue of the
Company’s new strategy to increase the number of smaller ticket leases.
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The client:
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Promsvyazleasing limited is a leasing company headquartered in Moscow. PSL was
established in 1999 to provide leasing finance in Russia. The company is
currently 50% owned by Promsvyaz Capital group, and 50% by Russia Partners, a
private equity fund operating in the Russian federation. As at the end of
September 30, 2006 the company’s total assets were USD 77.4 million and net
investment in leases of USD 32.2 million.
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EBRD finance:
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Convertible loan for USD 30 million.
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Total project cost:
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USD 30 million.
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Environmental impact:
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Promsvyazleasing is required to apply the EBRD’s Environmental Procedures for
Leasing which include the Bank’s Environmental Exclusion and Referral List.
Lessees are to comply, at a minimum, with national standards for environment,
health, safety and worker protection and public consultation. Promsvyazleasing
will assess potential environmental issues associated with individual
transactions and will be required to provide the EBRD with an Annual
Environmental Report.
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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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Sergey Kileinikov, CEO, Promsvyazleasing,
Office: 415, 134B Vereyskaya
Street
Moscow 121357
Russia
Tel: +7 495 745 4260
Fax: +7 495 644 2881
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EBRD contact:
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Konstantin Soshnikov, Operation Leader: soshnikk@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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