|
September 15, 2006,
Washington, D.C.—
The
International Finance Corporation, the private sector arm of the World Bank Group, is providing a six-year, $17 million loan to ALD Automotive (First Lease Ltd), the leading leasing and fleet management company in Ukraine focused on passenger and light commercial vehicles.
IFC’s financing will support ALD Automotive to develop its vehicle and fleet leasing operations in Ukraine during the next two to three years.
Leasing is often an alternative financing option, especially for small and medium enterprises that lack direct access to finance through the banking system. Unlike conventional loan financing, leasing decisions are based on an enterprise’s ability to generate cash flow from a leased asset and on the security of the asset itself. Leasing with full services is also a viable and more effective solution for multinationals in managing their vehicle fleet.
Jyrki Koskelo, IFC’s director of global financial markets said, IFC is pleased to support ALD Automotive in its effort to expand its leasing and fleet management services. By financing a company with an innovative product line, we are helping provide many Ukrainian small and medium enterprises with financing alternatives.”
Frederic Hamain, ALD Automotive’s general director, said, “ALD Automotive has been growing rapidly, and IFC’s long-term debt financing will allow us to increase our operations and provide a wider range of fleet leasing products to customers throughout Ukraine.”
About IFC
The International Finance Corporation, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services. For more information, visit
www.ifc.org
.
Ukraine became a shareholder and a member of IFC in 1993. As of May 31, 2006, IFC has invested more than $505 million in 26 projects in Ukraine. IFC expanded its investment program in Ukraine significantly in 2004-2005, committing $255 million in the agribusiness, financial, and general manufacturing sectors. IFC has also been conducting an extensive advisory program since 1992, which initially focused on the privatization of small businesses, land, and idle construction sites. Current donor-funded programs offer advice on corporate governance, leasing, and agribusiness. IFC also seeks to improve the business environment and promote growth of small and medium enterprises.
About ALD Automotive (First Lease Ltd)
ALD Automotive is the leasing company based in Kiev. Established in 1999, First Lease was one of the original companies in Ukraine to offer operating leases and fleet management services to the local market, mainly multinational and Ukrainian corporate clients. Since its establishment, First Lease has experienced rapid business growth, achieving a 37 percent market share in the operating and finance leasing market in Ukraine as of end-2005. The company also has a network of five regional offices, more than 20 technical centers throughout the country, and a workforce of 70. It has proven to be an innovative leasing company by introducing several products and services to the local market, including 24 hours emergency roadside assistance, fuel consumption management, and related fleet management and transportation services. First Lease is a subsidiary of ALD Automotive, itself a wholly owned subsidiary of Societe Generale SA. ALD Automotive is a world-wide leader in the operating leasing market for over 50 years. It has more than 600,000 vehicles under management in more than 33 countries, predominantly in Europe but with new entities recently established in Brazil, India and Egypt. For more information, visit
www.aldautomotive.com
|
