SocGen CELT - Global Partnership

completed

_x000C_This project applies the Credit Enhanced Lending Transaction concept (CELT”) to foster a global multi-country partnership between Societe Generale S.A. (SocGen or the Group) and IFC. Due to the new Basle II requirements, many international banks may need to allocate more capital for their emerging market exposures. A consequence is that smaller amounts of private sector capital may be allocated by the most active global banking players to the emerging markets. In addition, the Group is also restricted by its lending limits to emerging markets countries based on its country exposure limits, which are set individually for each country. The CELT structure would help global sponsors to address the issue of capital provisioning for emerging market exposures as well as existing lending limitations by managing country-specific risk and hence their country exposure restrictions. The CELT structure that is being pioneered with SocGen is an innovative product designed to promote continued private-sector financial flows at a time of impending change in the international regulatory environment. Proceeds of the IFC financing will be used in Russia and Ukraine to promote consumer finance and operational car leasing, which SocGen has targeted as amongst the most promising sectors, with a particular focus on the regions, where unmet demand for modern financial services is even greater than in the capitals of Moscow and Kyiv.