Strategic partnerships, M&A, and
state funds add up to an active market in Russia. Antonio Fabrizio
writes
Go deeper with GlobalData
A flurry of
M&A activity in leasing and banking has characterised the
Russian market recently, a sign that the country’s lenders are
gearing up for when the market recovers.
Sberbank Leasing, fully owned by Russia’s
largest bank Sberbank, has been the latest in the list of companies
in acquisitive mood. In mid-January, it bought a controlling stake
in Line Leasing Group, as part of its regional development
strategy.
Sberbank Leasing general director Dmitry Zotov
expects the acquisition to strengthen Sberbank’s position in the
Yaroslavl region, in the Central Federal District – one of the most
industrially developed regions of the Russian Federation.
At the same time, Russia’s second largest bank
VTB Group, which owns leasing giant VTB Leasing, has started a
phased acquisition of 100 percent of TransCreditBank (TCB) from
Russian Railways. As of December 31, 2010, the state-owned lender
had already consolidated 43.2 percent of TCB shares. The
acquisition includes its leasing subsidiary and will strengthen VTB
Leasing portfolio. The lessor is a strong player in railroad
transportation, accounting for 53 percent of its portfolio, and
aviation, which accounts for 29 percent.
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By GlobalData
New year ambitions
Other players are planning their next moves,
too. In December, Siemens Financial Services bought Russian
lessor DeltaLeasing from US Russia Investment Fund. The move is
part of Siemens FS strategy to position itself as a significant
operator in Russian asset finance.
Market speculation has also mounted regarding
Uralsib Financial Corporation’s next move. Its deputy management
board chairman Alexander Dementiev recently said that the bank
hopes to form a strategic partnership with foreign lenders,
including UniCredit or Raiffeisen.
Although UniCredit’s board of directors made
no specific mention of Russia in its December meeting to approve
the group strategic guidelines, the strategy mentions expansion in
CEE and more attention being paid to those countries having
greatest expected return. Its local leasing subsidiary has already
signalled a renewed focus on Russia with the appointment of a new
CEO.
Fabrizio Rollo, who was appointed on January
18, has said he intends to make a strong contribution to the growth
envisaged for UniCredit Leasing Russia, further developing the
local sales force, improving all relevant processes and skills,
continuing to implement a prudent credit approach, and ensuring
operational support for clients.
Any potential tie-up between Uralsib and
UniCredit or Raiffeisen might also affect its subsidiary Uralsib
Leasing, which is one of Russia’s top five leasing companies. The
lessor was very active in car leasing in the second part of last
year, and signed vendor agreements with car manufacturers including
Ford, Nissan and Renault, which also work with UniCredit in other
markets.
State funded farms
State-owned lenders have also stepped up their
activity in other ways.
After a positive 2010, Rosagroleasing’s board
of directors is now forecasting 15 percent growth in 2011 in its
leasing portfolio, alongside a 60 percent increase in net profit.
The lessor, chaired by Russia’s first deputy prime minister,
focuses on agricultural leasing, providing the sector with
machinery and pedigree livestock. Under a state-run project for the
agricultural sector, for 2011 Rosagroleasing has committed to
provide at least 30,000 units of equipment and 65,000 of
cattle.
The European Bank for Reconstruction and
Development (EBRD) and the Russian Bank for Development (RBD) are
also providing funding. In late October 2010, the EBDR gave a
seven-year loan of up to 1.5bn roubles to Europlan, a large
automotive leasing company, to help meet growing demand for local
currency leases.
It is also considering financing a leasing
entity of agricultural machinery manufacturer John Deere, to be
established in Russia. The project would support financing for
agricultural and forestry companies interested in acquiring John
Deere equipment.
On the same lines, the RBD signed two loan
facility agreements between December 2010 and January 2011 with
UralBusinessLeasing and Expresso-Leasing, as part of the bank’s SME
lending support programme.
See also:
Interest rates falls
mean better affordability
