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| Summary of Project Information (SPI) |
| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
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| Project number | 23201 |
| Project name | ZAO Europlan II |
| Country | Russian Federation |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | ZAO Europlan |
| Environmental category | FI-2 |
| Date SPI disclosed | December 29, 2005 |
| Projected board date | February 13, 2006 |
| Status | Active |
| Previous Events | Invested: December 29, 2006
Signed: August 2, 2006
Approved: June 8, 2006 |
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| Description of company and purpose of project |
Europlan or the company is Russia’s leading provider of automobile and equipment capital lease financing to local SME customers and IFC’s portfolio client since 2000. The company’s current portfolio is primarily comprised of assets in growth sectors of the Russian economy such as automobile manufacturing, trade, food production, machinery and printing. Its car lease portfolio with about 5,000 cars is the largest in Russia at present. Europlan has the widest national presence of any leasing company in Russia and besides its headquarters in Moscow, it has branches in St. Petersburg, Rostov-on-Don, Yekaterinburg, Nizhny Novgorod, Samara and Krasnodar and representation offices in other 15 regional cities.
Project Concept: This project comprises an A Loan of up to $20 million to Europlan and would have a maturity of 6 years and envisage a Ruble-linked feature. The loan would be used by the Company to finance its leasing activities in Russia. |
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| Project sponsor and major shareholders of project company |
| Ownership: Europlan is 67% ultimately owned by Baring Vostok Private Equity Fund, a reputable western investment fund with $800 million in capital under management in Russian and the CIS and operating in Russia for almost 10 years. Baring Vostok Fund is key strategic sponsor and financial back-up for Europlan. The minority stake in Europlan is owned by Capital International Fund, a global asset management company with $800 billion assets under management. |
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| Total project cost and proposed IFC investment |
| The total cost of the project is estimated at about $20 million. The proposed IFC investment is about $20 million A Loan for IFC’s account. |
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| Location of project and description of site |
| Europlan is headquartered in Moscow, Russia and operates through offices across many Russian cities. IFC’s investment will used by Europlan for financing its leasing activities in the Russian market. |
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| Project Development Impact and IFC's Role |
Development Impact:
The project will have strong development impacts:
- Leasing has been gradually emerging as a developmental tool in financial market of Russia and as a support in servicing SMEs. Leases are often the only form of term financing SMEs or start-ups can obtain in the market since banks often under-serve them. By providing/mobilizing much-needed funding to Europlan, IFC would promote growth of leasing in Russia and support SMEs.
- IFC’s financing will help to further disseminate best-practice lease finance using high-quality procedures and analysis in the market. IFC is already familiar with Europlan’s lending practices, which leaves IFC with comfort that Europlan is capable of delivering leases to SMEs.
IFC Role:
- to help Europlan to grow rapidly in future years and thus, provide funding for that purpose;
- to provide much needed medium term financing in local currency and hence, promote Ruble-leases; and
- to lengthen maturity and thereby stabilize funding base of Europlan. |
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| Environmental and social issues - Category FI-2 |
This is a Financial Intermediary (FI) Type 2 project according to IFC's environmental review procedure. Under IFC's previous investment, the project has established an environmental management system, attended the IFC training, nominated responsible officers and providing annual environment performance reports, and has been performing satisfactorily. For the duration of IFC's new investment, Europlan will be required to continue to maintain its environmental management system to IFC's satisfaction and to submit annual environmental performance reports to IFC.
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| To contact the project company, please write to: |
Hadrien J. Fraissinet
Chief Fundraising Officer, Europlan
hjf@europlan.ru |
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