SREI Leasing

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The proposed project consists in an equity investment in and debt financing to SREI Leasing Moscow, a subsidiary of SREI Infrastructure Limited, India. The EBRD funding will allow SREI Leasing Moscow to grow its leasing portfolio and reach more local small and medium companies in Russia. The company specialises in leasing of heavy equipment for construction and it intends to capture an important market share in this segment. The proposed project will support the establishment and growth of a foreign investor active in specialised lease finance in Russia. The project has, therefore, the potential to have a strong demonstration effect on other potential foreign investors showing the possibility to invest and grow in a challenging investment climate. By providing longer term finance, the project will support local small and medium enterprises operating in the construction sector. The entry of a world class player in the market is also like to increase competition resulting in improving product offer and inclusion of new customer segments into the lease financing business. More intense competition is also likely to improve the terms of finance available to clients. SREI Leasing Moscow was established in September 2004 in Moscow by its parent, SREI Infrastructure Finance Limited, India, as a specialised leasing company acting in the area of heavy construction equipment finance. SREI Infrastructure Finance Limited is the market leader in infrastructure finance in India with a market share of 30%. SREI Infrastructure Finance Limited is listed on the major Indian stock exchanges and on the London Stock Exchange through GDRs. An equity investment of up to EUR 1.5 million to acquire 15% of the shares in SREI Leasing Moscow. A loan of EUR 5 million to fund the growth of the leasing portfolio of SREI Leasing Moscow. EUR 6.5 million. SREI Leasing Russia will be required to adopt and implement the EBRD's Environmental Procedures for Leasing which includes adherence to the Bank's Environmental Exclusion and Referral Lists, compliance with the applicable national environmental, health and safety and labour requirements, and submission of an Annual Environmental Report to the Bank. None. ZAO Srei Leasing Rajesh Bhalotia, General Director 10B, Namyotkina Street, Moscow 117420, Russia Tel +7 495 221 0124 Fax +7 495 331 3688 Website: www.srei.com, www.srei.ru, Email: bhalotia@srei.ru