The technical partner of International Leasing & Finance Company Limited (ILFC) is KDB Capital, previously Korea International Leasing Company (KILC). KILC Capital was established in 1972 as South Korea’s first leasing company and remains one of the country''s largest. KDB Capital was formed in 1999 by the merger of KILC with Korea Technology Finance Corporation, another subsidiary of KDB. KDB Capital is now owned by the Korea Development Bank (KDB) (48%); Nippon Credit Bank (NCB) (40%); and local Korean companies, and employees. In recent years, KDB Capital has expanded internationally, establishing affiliates in Hong Kong, Tokyo, China, and Vietnam. Like many other Korean leasing companies, the downturn in the Korean economy during 1998 has affected KDB Capital''s asset quality. However, KDB Capital remains in a strong position relative to other Korean leasing companies, due to its strong management and affiliation with the government-supported Korea Development Bank.

KDB Capital holds 40% of ILFC''s current equity base and the balance of 60% is held by Nepalese sponsors.

The Nepalese sponsors are reputed companies with a track record in the financial sector. National Life & General Insurance (NLGI) which holds 16.7% of ILFC''s equity is the second largest insurer in Nepal and the first and largest private insurance company. NLGI''s main sponsor, Mr. Siddheshwar K. Singh, is the Chairman of ILFC. Vijaya International Pvt. Ltd. (9.0%), May Flower Pvt. Ltd. (1.5%) and Ava International Pvt. Ltd. (1.0%) are investment companies owned by Ashoke SJB Rana, Himalaya B. Pande and Himalaya SJB Rana respectively. These three individuals are the main sponsors of Himalayan Bank and also hold positions at this bank.

The project involves increasing ILFC''s equity base by NRs. 75 million (US$1.07 million) in order to facilitate further business growth. The proposed IFC investment is for an amount of about US$350,000 for an equity stake of about 20%.

0.31 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	0.31

* These investment figures are indicative

ILFC is based in Kathmandu, Nepal.

This is an environmental review category FI Type 1 project. IFC will assess ILFC’s capability to carry out reviews. For relevant operations, ILFC will be required to implement an environmental management system requiring leased assets to be operated in accordance with the environmental, health, and safety requirements of Nepal. ILFC will be required to provide an annual environmental performance report.
Location of environmental documents In locally affected community