Raiffeisen Leasing Srl

MIGA has provided Raiffeisen Zentralbank Osterreich AG (RZB) of Austria two guarantees for $10.6 million and $9.5 million to cover its shareholder loans of 11.2 million and $10 million to Camionaval Leasing Company Srl. (to be renamed S.C. Raiffeisen Leasing Srl) (RL) of Romania. The coverage is for six years and is against the risks of transfer restriction and expropriation of funds.

Leasing companies can serve as important means to help grow companies that require investments in equipment to facilitate expansion. Particularly for SMEs, with limited access to capital and little credit history, equipment leasing can be a crucial mechanism to spur growth and enable acquisition of assets. Romania has identified leasing as an engine for growth and development; however, the countrys leasing operations have been hampered by a lack of funds. This project will help RL provide leases for financing of new equipment to Romanian companies, including SMEs, while increasing the availability of funds in the Romanian financial sector. With two branches and 41 selling points across the country, RL expects to employ nine people initially, and add an additional 67 workers over the next five years. The company will specialize in transportation sector leasing—trucks, trailers, utility cars—and will offer quick, efficient, high quality services at competitive prices. RL will benefit from the RZB network for on- and off-site staff training, plus use of sophisticated leasing products and proprietary software systems.