PROJECT

Projects

Summary of Proposed Investment

Project Number

10681

Company Name

ZAO Europlan

Date SPI Disclosed

Oct 12, 2001

Country

Russian Federation

Industry

Financial Markets

Projected Board Date

Dec 7, 2001

Status

Completed

Sector

Leasing Services

Department

Global Industry, Financial Markets

Environmental Category

FI

Previous Events

Approved : Feb 13, 2002
Signed : May 16, 2002
Invested : Jul 24, 2002

Project Description


The project provides an IFC credit line to DeltaLeasing. The purpose of the investment is to fund DL''s leasing operations, which provide equipment financing to small and medium enterprises (SMEs) in several regions of the Russian Federation.

The proposed credit line would help the company: (i) expand its existing portfolio and client base; and (ii) provide a new source of funding, independent from the company''s main shareholder (TUSRIF). One of DL''s main business objectives is to move towards private funding sources in order to ensure the company''s growth and future sustainability.

This project serves as an example of how IFC uses its technical assistance efforts to promote investment opportunities, especially in the leasing sector. Over the past two years, DL has been a recipient of technical assistance from IFC''s Leasing Development Group, IFC''s technical assistance unit, whose aim is to promote the development of the leasing sector in Russia.

The project would have the following developmental impacts:
1) IFC''s financing will be used by Russian SMEs to upgrade capital assets and thereby improve their competitiveness -- currently Russian SMEs have virtually no other sources of funding;
2) DL will channel lease finance to support viable enterprises in economically important, but undercapitalized regions in the Russian Federation.
3) IFC is playing its role of catalyst in providing DL with a chance to establish an excellent borrowing record for the company''s future access to private lenders.

Sponsor / Cost / Location

Development Impact