Carcade to raise $50m A/B loan from EBRD

The proposed project consists of a senior syndicated loan of USD 50 million with an A/B structure to Carcade, one of the leading providers of financial leases to small and medium-sized enterprises (SMEs) in Russia. The B loan will be syndicated.

The facility will support the diversification of Carcade’s funding base and the expansion of its SME leasing portfolio in Russia.

Supporting the development of private companies, SMEs in particular, in the regions outside Moscow and St. Petersburg.

Increasing the competition in the leasing sector. A healthy leasing industry will assist in bringing increased flows of financing to the productive sector of the economy, thereby facilitating growth of domestic production.

The project will provide positive demonstration effect by introducing for the first time commercial lenders to Carcade and demonstrating that commercial financing of leasing receivables in the absence of guarantees from western parent companies is achievable in the Russian market.

On the market since 1996 Carcade is based in Moscow and is an independent leasing company that offers domestic financial leasing solutions to SMEs in Russia. The distribution network consists of 38 sales offices in 33 cities in Russia. Since 2005 consistently one of the 3 key players in the car leasing market in Russia, showing strong financial results.

EBRD finance: A senior secured term loan of USD 50 million, with an A/B structure, B loan to be syndicated.

Total project cost: USD 50 million.