The Black Sea Trade & Development Bank (BSTDB) will make available a US$5mn three-year SME Leasing Facility to DeltaLeasing (Russia). The facility will be used by DeltaLeasing for the leasing of capital goods and equipment to Russian small and medium-sized enterprises (SMEs).
DeltaLeasing is one of the leading leasing companies in Russia active in the SME sector. The company has developed an efficient leasing franchise and is well positioned to deliver the BSTDB’s financing to the end-users – Russian SMEs – through its established distribution network.
“By signing the first SME leasing facility in Russia, the BSTDB expands cooperation with leasing companies in the bank’s member countries and increases its support to the leasing sector in the Black Sea region. The BSTDB aims to facilitate the development of sound leasing practices and to improve access of SMEs in its member countries to the medium-term financing of capital goods,” says Andrei Vernikov, vice-president of the BSTDB.
“We consider this as a first step toward the long-lasting and mutually beneficial cooperation of two organisations in the Russian market of SME leasing,” adds Nikolai Zinoviev, president of DeltaLeasing.
Michael Lomtadze, principal at Baring Vostok Capital Partners, adds: “Access to medium and long-term debt financing is a source of significant competitive advantage for leasing companies in Russia. DeltaLeasing already has built a diversified creditor base, and the transaction with BSTDB is another demonstration of our ability to raise long-term debt financing from leading international financial institutions.”
DeltaLeasing is an independent Russian leasing company and an investee company of Baring Vostok Capital Partners, a private equity fund investing in Russia and CIS. Since its inception in 1999, DeltaLeasing has been providing equipment, corporate fleet and commercial real estate leasing products to small and medium enterprises through a nationwide network of seven branches covering 27 regions of Russia. The company has a quality leasing portfolio of over 800 leasing transactions across a broad range of industries. Before signing the leasing facility with the BSTDB, DeltaLeasing has been actively cooperating with other international financial institutions, such as the EBRD and IFC.
Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. With an authorised capital of SDR1bn (US$1.4bn), the bank supports economic development and regional cooperation by providing financing for investment projects and trade transactions in public and private sectors in its member countries. Since the commencement of operations in 1999, the BSTDB has approved financing in excess of US$530mn for over 50 projects and trade transactions in the Black Sea region.
