OREANDA-NEWS. March 10, 2010. SEB entered into an overdraft contact with the KfW Bankengruppe in order to finance the capital lease contracts of small and medium enterprises with a 2.9% interest rate plus the usual base interest rate or 6 months’ EURIBOR. The contract is partially cofinanced by the Council of Europe Development Bank (CEB), reported the press-centre of SEB.

The leasing terms and conditions offered by SEB and KfW are similar to ordinary leasing terms and conditions. However, it is possible to offer lower interest rates by including the KfW Bankengruppe as a party in the financing.

The maximum amount of a one-off financed transaction may be 1.17 million kroons, but the overdraft is mainly aimed at transactions whose amounts remain below 390,000 kroons. The target group consists of the main economic engine or small and medium enterprises (companies with up to 250 employees whose turnover is less than 50 million euros or balance sheet total less than 43 million euros), which need to invest in equipment or vehicles in order to develop their everyday economic activities or increase their efficiency. Leasing contracts can be entered into within the scope of the overdraft offered by SEB and KfW only as capital lease contracts.

Ainar Leppanen, CEO of SEB Leasing: “We have worked hard for many years to make SEB the best home bank for its clients. By intermediating the resources available from the structural funds of the European Union, we want to offer our clients the best solutions for the investments they need. Capital lease is the best option for equipment leasing and it also has certain advantages over operating lease in the case of vehicles. For example, the client is entitled to the potential sales proceeds associated with the leased object if the sales price exceeds the contractual residual value and the cost of sales. In the case of an insured event, the part of the insurance indemnity that exceeds the residual value of the leased object is paid to the client. It is also possible to reduce the amount of monthly payments in the case of capital lease contracts and leave a larger lump sum to be paid at the end of the lease period. We believe that this offer for enterprises is an attractive one on the leasing market and strengthens our relationship with our corporate clients.”

If you would like to apply for leasing, please contract your Client Executive who will conduct the usual solvency analysis.

KfW Bankengruppe is the largest bank in Germany that focuses on the promotion of European and German economy. SEB and KfW Bankengruppe have been cooperating within the scope of various contracts since 2002.