OOO Raiffeisen Leasing

MIGA issued guarantees of $38 million and €14.25 million ($18 million), respectively, to Raiffeisenverband Salzburg (RZBS) of Austria for its $40 million and €15 million share-holder loans to OOO Raiffeisen Leasing (RLRU), Moscow, the Russian Federation. The guarantees are for a period of five years and provide coverage against the risks of currency transfer restriction and expropriation.

RLRU is a licensed leasing company with branches in Moscow and in St. Petersburg. RLRU offers a wide range of products for leasing, including railway cars, agricultural equipment, utility vehicles, construction equipment, and packaging and industrial machinery. The guaranteed investments will be used to strengthen RLRU’s leasing portfolio and expand its operations in Russia. This will allow RLRU to continue to fill a financing gap in Russia by providing SMEs with medium and long-term credit and access to modern equipment. Since the leasing sector in Russia is still developing, RLRU’s market-leading position is also expected to introduce high industry standards in corporate governance, customer services, and product offerings. RBRU’s leasing activities are expected to generate about $15 million in exports annually. The company expects to hire about 52 local employees over the next five years and train them on-and off-site.