Summary of Proposed Investment
Project Number
8756
Company Name
Axon Vagyonkezelö Organizációs és Befektétesi
Date SPI Disclosed
May 8, 1998
Country
Hungary
Industry
Financial Markets
Status
Completed
Sector
Leasing Services
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Jun 30, 1998
Signed : Jun 28, 1999
Invested : Dec 23, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Hungary - Axon Leasing |
| Region | Europe |
| Sector |
Projected Board DateJune 8, 1998
Company NameAxon Leasing
Technical Partner and/or Major Shareholders
Inter-Europa Investments is a wholly owned subsidiary of Inter-Europa Bank (IEB), a current IFC client. IEB is one of the fifteen largest Hungarian banks, with total assets of US$548 million, net worth of US$54 million and pre-tax profit of US$11 million as of 12/31/97. IEB is controlled by Istituto Bancario San Paolo di Torino of Italy (San Paolo Bank).
San Paolo Leasing, the second largest leasing company in Italy and a subsidiary of San Paolo Bank, would be retained as the technical advisor.
Project Cost Including proposed IFC investment
US$$4.88 million, consisting of (i) US$1.14 million equity investment by IFC; (ii) US$1.14 million equity investment by Inter-Europa Investments and (iii) US$2.6 million existing Axon capital.
Location of project and Description of site
Axon''s headquarters are located in Szolnok, east Hungary. The Company has nationwide operations through its 8 regional centers.
Description of Company and Purpose of Project
Axon is a non-bank owned Hungarian leasing company specializing in agricultural equipment leasing. IFC’s equity investment in Axon supports the company’s expansion and is expected to help the development of Hungary''s agribusiness sector. Leasing could develop into an important source of credit for the agribusiness sector, a sector which is particularly favorable to the establishment of small and medium enterprises (SMEs).
Environmental Category and Issues
This is a category FI project according to IFC’s environmental review procedure. Axon Leasing must attend IFC’s workshops on environmental management; for relevant operations, implement an environmental management system (policy, procedure, and designated staff to conduct reviews) to ensure that equipment or assets financed through such operations comply with World Bank environmental, health and safety guidelines and policies, as well as host country environmental requirements; and submit an annual environmental performance report briefly describing environmental aspects of relevant operations. In addition, IFC will assess Axon''s capacity to undertake reviews.
| Date SPI sent to PIC | May 8, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
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