OOO Raiffeisenbank Leasing

MIGA has provided a $9.5 million guarantee to Raiffeisenlandesbank Steiermark registrierte Genossenschaft mit beschrdnkter Haftung, Graz, of Austria, to cover its $10 million shareholder loan to OOO Raiffeisenbank Leasing (RLRU), in Russia. The coverage is for 5 years, and is against the risks of transfer restriction and expropriation of funds.

The project will finance the expansion of RLRU's operations, and is consistent with The World Bank Group strategy in Russia, which identifies the development of a sound, efficient banking system as a strategic goal. The investment will have a significant developmental impact as it will help bolster the Russian financial sector through the provision of medium-term, asset-based financing, which is still relatively rare in Russia. RLRU expects to provide leasing mainly to SMEs. The company expects to add 34 employees over the next five years. The employees will benefit from the RZB network for on- and off-site staff training, thus promoting knowledge transfer to Russia.