ING Lease Ukraine

This summary covers a non-shareholder loan by ING Interfinance BV of the Netherlands to its sister company, ING Lease Ukraine. The investor has applied for a MIGA guarantee of €40.4 million (approximately $57.1 million equivalent) for a period of up to 15 years against the risks of inconvertibility and transfer restriction.

The project involves a non-shareholder loan of €64 million from ING Interfinance BV, the wholly-owned financing arm of ING Lease Holding N.V. of Netherlands to its sister company ING Lease Ukraine (INGLU). The purpose of the loan was to provide funding to INGLU for the development of a portfolio of commercial real estate assets that will ultimately benefit micro, small, and medium-sized businesses.

Environmental Categorization

The project is a category FI under MIGA’s Policy on Social and Environmental Sustainability.

Development Impact

For INGLU, this long-term non-shareholder loan facility has allowed it to respond to the rapidly growing demand for leasing products in Ukraine. Long-term financing is not available to INGLU from sources other than its parent holding company at this time of uncertainty in the financial markets. INGLU has used the proceeds of this loan facility to enhance and diversify its portfolio both in terms of sector and maturity. In addition the presence of foreign financial institutions has been one of the most important aspects in the development of Ukraine’s leasing sector. By supporting INGLU—one of the fastest growing leasing company in Ukraine—MIGA will facilitate the transfer of best operational practices and benchmarks for the sector by global international groups like ING.

There is also ancillary development impact based on the underlying asset, which is the financing of a large commercial mall. This mall has 112 tenants, comprising small retail businesses providing direct and indirect employment to an estimated 1,200 to 1,500 people in a region of Ukraine where unemployment is above the national average. It also provides a market for local suppliers and an increased product offering for local consumers. Furthermore, it benefits local communities by facilitating trade of goods and services through increased economic activity for all strata of the society.