This is the EBRD’s first local currency loan to a leasing company in Romania. The funds will be on-lent to micro, small and medium-sized enterprises (MSMEs) to finance leases of equipment, trucks, trailers and commercial vehicles, the Bank said in a statement.
“We are pleased to increase the availability of financing to Romanian businesses through our continued cooperation with Raiffeisen Leasing. Leasing is often the most efficient way for MSMEs to obtain long-term funding for their expansion. By providing this financing in local currency we are also mitigating foreign exchange risks and boosting the RON-denominated leasing market,” said Noel Edison, EBRD Director for Insurance and Financial Services.
Felix Daniliuc, General Manager at Raiffeisen Leasing in Romania, said the loan will help the company meet rising financing requests from small and medium-sized enterprises and to offer a more diverse product line for customers.
“The new financing line in RON completes our existing product range in local currency, dedicated to customers who want to minimise the credit risk and uncertainty associated with a foreign currency loan,” Daniliuc also said.
Raiffeisen Leasing has been an EBRD client since 2003 under the EU/EBRD Leasing Facility. The new loan is the EBRD’s fourth financing deal with Raiffeisen Leasing in Romania, bringing the total amount extended to the company to EUR80 million.
Investments in Romania by the European Bank for Reconstruction and Development increased 16.5% in 2014, to EUR592 million, even though the number of financed projects dropped from 32 to 26.