|Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature.|
This summary covers a €95 million funding package to SIA “UniCredit Leasing” (UCLL) in Latvia, a member of the UniCredit Group (UCG), consisting of two investments: a €50 million shareholder loan from UniCredit Bank Austria AG (UBA) funded by the Council of Europe Bank (CEB), and a €45 non-shareholder loan from the European Investment Bank (EIB) guaranteed by UniCredit Spa or UBA. UBA has applied for MIGA guarantees of up to €90.25 million against the risks of transfer restriction, expropriation, and war and civil disturbance.
The Latvian leasing market is currently feeling the effects of the financial crisis. Access to affordable finance for small and medium enterprises (SMEs) has worsened and many local leasing companies have lost access to funding sources. The purpose of both investments is to enable UCLL to extend leases to SMEs.
The project is a Category FI under MIGA’s environmental review procedures.
This project is expected to contribute to the development of the financial sector in Latvia by improving access to finance, particularly to segments of the economy that are currently underserved. The project will meet the increasing demand for leasing as a form of asset financing.
The project is intended to support SMEs at a time when credit conditions continue to make it difficult for smaller companies to raise financing. EIB and CEB are providing attractive long-term funding to UCLL in the context of the Joint IFI Action Plan designed to support the financial sector and lending to real economy in Europe and Central Asia. MIGA’s support for this project is consistent with this objective.