OOO Raiffeisen Leasing
MIGA has issued $70.8 million in guarantees covering two shareholder loans made by Raiffeisen Zentralbank Österreich AG (RZB) to its subsidiary OOO Raiffeisen Leasing. The guarantees are covering the risks of transfer restriction and expropriation of funds for a period of just over five years.
RZB’s shareholder loans to its subsidiary will provide OOO Raiffeisen Leasing with the necessary funds to expand its leasing portfolio, improve the range and quality of its leasing services, and continue its regional expansion. The loan proceeds are expected to be used primarily for the funding of leases of industrial equipment and transport infrastructure.
The increased availability of equipment will help facilitate private sector investment at the regional level. OOO Raiffeisen Leasing currently has five regional branches, where 60 percent of new business is generated.
One of the main objectives of the World Bank Group’s country partnership strategy for the Russian Federation is to support the development of the financial sector. MIGA’s participation in this project is, therefore, aligned with the Bank Group’s strategy in the country.