OPIC Board Approves $90 Million for SME Leasing Project in Russia
March 31, 2010
WASHINGTON, D.C. – The Board of Directors of the Overseas Private Investment Corporation (OPIC) today approved a $90 million loan to support the growth of an equipment leasing operation in Russia that largely serves small and medium-sized enterprises (SMEs) in rural areas of the country.
The OPIC loan will enable CJSC DeltaLeasing, a leading Russian leasing company based in Vladivostok, to expand its vehicle and equipment leasing operations to SMEs, which comprise approximately 80 percent of its clients. In addition, eighty percent of the company’s clients are located in rural areas such as Russian Far East and Siberia. DeltaLeasing operates 14 full-service offices in Russia, and has originated $615 million in lease transactions since its inception in 2000.
DeltaLeasing anticipates that the project will generate 56 new employee positions over five years, the vast majority of which will receive professional training.
The U.S. sponsor of the project is The U.S. Russia Investment Fund (TUSRIF), a nonprofit corporation established by the Support for East European Democracy Act of 1989 and the Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support Act of 1992 for the purpose of promoting private sector development in Russia.
“This project will provide valuable access to lease financing for SMEs in Russia that are underserved by traditional lending institutions during this period of tight global liquidity. In particular, it will help SMEs in rural areas expand their operations,” said OPIC Acting President Dr. Lawrence Spinelli. “OPIC is pleased to support a project with important developmental benefits for Russia.”
The project is OPIC’s third with DeltaLeasing. In 2005, OPIC approved a $9.75 million investment guaranty with the company, and in 2007, OPIC approved a second investment guaranty facility of $20 million.