ALEKSANDR SERGEYEVICH ZUBANEV

CJSC “Leasing Company “Ukrincomlease”

PRESENTATION

“Practical Aspects of Cooperation between Ukrainian Banks and Leasing

Companies: Lessor’s Perspective”

TOPIC OF THE PRESENTATION – key steps of cooperation between leasing company and bank.

1. Starting Points

In Ukraine, leasing companies are predominantly funded by local banks.

Success of leasing companies’ operations to a large extent depends on how well they get along with banks.

2. Leasing Companies interest

to obtain large-scale credit lines in foreign currency at attractive interest rates

To as much as possible speed up obtaining of each loan within the credit line

To be able to quickly increase volume and terms of lending

To minimize credit risks of loans to leasing companies

To receive sufficient colateral for loans it provides

Issue loans on the best possible conditions

To cut its administration costs for issue and monitoring of loans

Receive additional benefits from cooperation with leasing company

3. Bank’s Interests

4. Alignment of Interests

Optimum alignment of bank’s and lessor’s interests takes place in the process of their practical cooperation. It may take time.

Our practice of work with banks allowed to come up with a cooperation pattern which takes into consideration interests of both parties.

5. Bank’s and Leasing Company’s Cooperation Pattern

1. A credit line is opened for a specific leasing program.

2. A detailed feasibility study must be developed for each leasing program.

3. Bank receives a number of additional benefits from cooperation with us.

4. Bank receives our analytical reports on the client and his/her project.

5. We undertake a number of steps to reduce credit risks.

6. Leasing company closely cooperates with bank in reviewing proposed projects.

6. Credit Line

Each tranche credit line is typically opened for a specific leasing program, which includes a group of similar leasing projects (for example, projects aimed at leasing of cars).

This enables to considerably reduce costs and time required for review of each project within the credit line.

7. Main Points of Feasibility Study

Analysis of the respective market situation

Main partners which will be engaged into the leasing projects

Detailed financial projections on the program

Benefits of bank and leasing company as a result of leasing program

8. Additional Benefits for Bank

Leasing company helps its clients to establish direct cooperation with bank

Through partnership with leasing company, insurance companies and leased assets suppliers are encouraged to directly interact with the bank.

9. Main Areas of Cooperation with Bank

Leasing company provides the bank with analytical reports and other material it has prepared during review of clients’ project proposals

Leasing company quickly prepares additional documents, required by the bank to review the proposed project

Leasing company takes active part in preparation of documents on loan

10. Ways to Reduce Risks Inherent in Leasing Projects

Elimination

Mitigation

Hedging

A joint action plan between leasing company, insurance company and equipment supplier

11. Additional Sources of Funding for Leasing Projects

Commercial loans

Pledge of titles

Bonds

Stock

Securitization of leased assets