I.C.S. TOTAL LEASING AND FINANCE S.A.
Status: Completed investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Total Leasing (TL) was established in 2006 and its main activity is to provide financial leases of mainly motor vehicles and equipment to micro, small and medium-sized enterprises (MSMEs) and individuals. In 2010, as a result of the legal and fiscal environment, as well as (potential) clients’ preference to purchase equipment instead of lease, TL started making loans to MSMEs. This allowed the company to keep the focus on financing business assets and to improve access to finance for MSMEs in rural areas. FMO is a 25% shareholder of Total Leasing.
What is our funding objective?
FMO is extending a senior secured MASSIF loan of the Moldovan Leu equivalent of maximum EUR 4 million, with a 5 year tenor and 1 year grace period. By using this local currency structure, both direct and indirect currency exchange (FX) risks will be mitigated for TL as well as for its clients. Currently, all TL’s funding and most of its leasing portfolio is denominated in or indexed to EUR/USD, effectively minimizing on-balance sheet FX mismatches. The loan is intended to support TL in expanding its MSME financing in both urban and rural areas and to foster the development of the strategic economic sectors in Moldova.
Why do we fund this investment?
Commercial long term (LT) funding is non-existing in Moldova. FMO’s funding will help TL to attract LT funding from other DFIs as well. After this client was discussed with another investor, they expressed their interest to co-invest in this transaction with FMO and expect to provide a EUR 3 million loan. FMO will provide its expertise as well as a board operating close to management as long as TL is a young company.
- Region
- Europe & Central Asia
- Country
- Moldova, Republic of
- Sector
- Financial Institutions
- Effective date
- 7/5/2012
- End date
- 9/25/2017
- Total FMO financing
- EUR 4.00 MLN
- Funding
- MASSIF
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C