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IFC will establish a joint leasing company in Venezuela



On October 15, 2010, during the official visit of the official delegations of the Bolivarian Republic of Venezuela, headed by the Republic’s President Hugo Chavez, to Russia, memorandum on establishing a joint leasing company in the air market of the Latin America was signed between the Venezuela’s Ministry of People’s Power for Transport and Communications, “Ilyushin Finance Co.” Leasing Company (IFC) and “Eurofinance Mosnarbank”.

The purpose of the leasing company to be established will be supply of Russian new generation jets to the Latin America countries, under conditions of operational and financial leasing. Supposedly, the initial capital of the joint company will make approximately $100 mln., provided that the jets will be supplied according to the mechanism of the Russian high technology products export support.

In accordance with the document signed, the parties plan to establish a joint leasing company in the 1st quarter 2011, with participation of ICF and the Bi-national Russian-Venezuelan bank of development, which is being incorporated at the moment on the basis on “Eurofinance Mosnarbank”. IFC will provide the managerial potential and knowledge in the scope of air industry, as well as a part of its capital, at the disposal of the company to be incorporated. The Bi-national Russian-Venezuelan bank of development will deal with financing, and the Venezuela Ministry of People’s Power for Transport and Communications will act as a regulating entity.

Business plan developed by IFC, and the preliminary order portfolio for 28 An148/158 aircrafts. The orders with the total value of about $700 mln. came from the Latin American air companies from Argentina, Chile, Equador, Bolivia, Cuba, Nicaragua and Venezuela.

Source: IFC press service.