EuroLease Auto Bulgaria in Line for €10m EBRD Loan

EuroLease Auto Bulgaria is poised to receive a €10 million senior loan after the EBRD Board issued final approval as part of its ongoing support of small and medium-sized leasing businesses. The deal only awaits final signatures before becoming part of a total financing package for EuroLease which includes at least one Bulgarian commercial bank.

The investment is aimed at promoting the growth of EuroLease Auto Bulgaria which, like most leasing operations, depends on external financing to meet such goals. As is the norm for EBRD investments, EuroLease will be required to meet local and EBRD requirements for environmental, safety, and labor standards.

EuroLease Auto Bulgaria
EuroLease Auto Bulgaria (EAB) is a holding of EuroHold Bulgaria, the Bulgarian investment firm active in a variety of sectors including automotive. EAB was established in 2004 and is engaged in the leasing of passenger vehicles, trucks, and other commercial vehicles to small and mid-sized companies. It is the largest private leasing company in Bulgaria and has enjoyed steady growth, but the global economic downturn has been trying on the company.

EuroHold Bulgaria recently sold the Avto Union Centre in Sofia to satisfy a portion of outstanding debt while also funneling existing resources into further opportunities in the automotive sector.

Avto Union (www.avto-union.com)
Avto Union is a holding company in Bulgaria whose business is primarily the wholesaling and distribution of automotive products and services. The company also deals in imports of three scooter brands while operating several subsidiaries with distribution rights to the Fiat, Lancia, Alfa Romeo, Piaggio, Vespa, Gilera, Maserati, Mazda, Opel, and Chevrolet brands in Bulgaria.

Avto Union is the exclusive operator of the Avis car rental franchise and has the sole rights to imports of Castrol and BP lubricants.

Eurohold Bulgaria (www.eurohold.bg)
Eurohold Bulgaria is a financial holding company established in 2006 from a merger between Starcom Holding and Eurohold. Eurohold’s current investments are mainly in the automotive, financial services, manufacturing, and real estate sectors.

Long term growth targets for Eurohold include gaining a 10% market share in the automotive sales and leasing sector along with general insurance and supplementary private health insurance.