MONTREAL, June 19 /CNW Telbec/ - Export Development Canada (EDC), the
European Bank for Reconstruction and Development (EBRD), and Raiffeisen
Leasing (Russia) today signed an agreement for an innovative USD 45 million
leasing program designed to facilitate purchases of equipment by small- to
mid-sized buyers in the Russian Federation from vendors located in Canada and
other EBRD member countries.
The agreement was signed by EBRD President Jean Lemierre and EDC
President and CEO Eric Siegel at the Conférence de Montréal in Canada.
Mr. Siegel and Mr. Lemierre underlined the broad advantages of the program
that will offer the unique opportunities of leasing in the Russian market and
the strong market position of Raiffeisen Leasing, one of Russia's leading
"Russian mid-tier markets are experiencing explosive growth, but are
constrained by lack of access to capital," said Mr. Siegel. "At the same time,
exporters from Canada and elsewhere have been looking for a lease financing
mechanism that can help them serve this market. We tailored the program to
this specific market and scenario, and we believe that it will greatly help
develop opportunities for vendors."
Mr Lemierre said that this unique framework had allowed the EBRD and its
partners to jointly assume the risk of direct lending to medium and
small-sized Russian clients, using leasing as a highly efficient financing
vehicle. "The EDC and the EBRD designed this framework together. We at the
EBRD look forward to working with the EDC and other lenders in the coming
months and years," he added.
Transactions under the program will be financed jointly by EBRD and EDC
(or, in the case of non-Canadian transactions, a third financial institution),
with each lending 45 per cent. Raiffeisen Leasing will hold 10 per cent of the
risk. Among the aspects of the framework are expedited processing times for
lease proposals, standardized due diligence, and non-recourse of the lenders
to the borrower and the lessor (Raiffeisen Leasing).
The EBRD, owned by 61 countries and two intergovernmental institutions,
aims to foster the transition from centrally planned to market economies from
central Europe to central Asia.
Raiffeisen Leasing, a subsidiary of Vienna-based RZB, offers financial
leasing, mainly for industrial equipment and vehicles, to sectors including
construction, telecommunications and transport. Outlets are located in Moscow,
St. Petersburg, Ekaterinburg, Samara, Novosibirsk, Nizhni Novgorod, and
EDC is Canada's export credit agency, offering innovative commercial
solutions to help Canadian exporters and investors expand their international
business. EDC's knowledge and partnerships are used by 7,000 Canadian
companies and their global customers in up to 200 markets worldwide each year.
EDC is financially self-sustaining and is a recognized leader in financial
reporting, economic analysis and has been named one of Canada's Top
100 Employers for six consecutive years.
For further information:
For further information: Media contacts: Phil Taylor, EDC Public
Affairs, (613) 598-2904, email@example.com; Anthony Williams, EBRD Communications
Department, +44 207 338 6997, firstname.lastname@example.org