OREANDA-NEWS. German KfW (Kreditanstalt fur Wiederaufbau) signed Loan Agreement with Transсapitalbank providing Transсapitalbank with credit facility amounting to USD 15 mln for the purpose of development of TCB's Leasing program. The maximum tenor of the loans granted under this credit facility is up to 5,5 years; the grace period is 2 years. Thus, the aggregate maximum tenor of loan repayments is up to 7,5 years.

This deal can be considered as a unique one, as Transсapitalbank obtained medium-term funding exclusively for further financing of SMEs through its own subsidiary - JSC "United Leasing Company". Taking into account that obvious deficit of medium- and long-term financial resources one can see on the Russian market, the realization of such projects contributes to strengthening TCB's funding base as well as its competitive capacity on the banking services market. KfW banking group is one of the ten biggest banks in Germany with a balance-sheet total of EUR 360 billion as per 31.12.2006.

KfW is owned by the German federal government (80%) and the Lander (20%) and has a strong backbone. KfW is a promotion bank, which gives impulses for the economy, society and ecology in Europe and the world over. It also makes promotion of SMEs, developes home finance or housing modernization, finances protects related to the environment protection, provides Export and Project Finance in the developing and transition countries. Cooperation between Transсapitalbank and KfW began in 2006 in the framework of develpment of TCB's international business and partnership with international financial institutions.