German state-owned development bank Kreditanstalt fur Wiederaufbau (KfW) is to provide a €10 million, EU-supported credit line to Hungarian leasing company Lombard Lízing Zrt, the company has announced.
The credit line will allow Lombard Lízing to expand its asset financing for SMEs to include new preferential leasing facilities from November. KfW's loans will be market-priced. They will mature in eight years and have a two-year call period. Lombard Lízing will be allowed to use the credit line only to refinance pre-defined facilities and assets.
Under the norms defined by the EU, the KfW loans will be available to family farmers, self-employed individuals or companies employing at most 250 workers and with maximum revenue of €40 million per year to finance new machine investments. Businesses may apply for the loans in forint-, euro- and Swiss franc-denominated facilities. The leased value financed from the loans may be at most €250,000.
Lombard Lízing, owned by Germany's VR Leasing, one of Europe's biggest independent leasing companies, specializes in vehicle, capital goods and real estate financing. The company takes second place on the Hungarian leasing market in terms of asset value, according to statistics from the Hungarian Leasing Association. Its market share exceeded 10.9% in H1. Lombard had outlays of Ft 137.3 billion in 2005. It expects to close 2006 with outlays of Ft 155 billion.