In 2011 the demand for cargo vehicles, machines and equipment significantly surpassed the levels of the previous year.

UniCredit Leasing registered a growth of 26% in the value of new contracts for the first quarter of 2012, compared to the same period of last year, up to BGN 44 million. The increase in the number of new contracts is 3%. In the first quarter of this year different economic sectors were financed, amongst which international transport, renewable energy sources, agriculture, healthcare, mining and processing industry.

For the whole of 2011 the number of signed leasing contracts grew by 20% compared to the previous year. The value of the contracts jumped by 17%, and as at 31 December last year it amounted to BGN 153 million. The attracting of new clients contributed to a growth of 150% in the profit of UniCredit Leasing, reaching over BGN 6 million. The company also managed to maintain its leadership position in Bulgaria in terms of portfolio of financial leasing contracts with a market share of almost 20%. UniCredit Leasing also has the largest portfolio of leasing contracts, worth BGN 700 million. For last year the company registered a growth of 94% in the leasing of machines, equipment and facilities.

“UniCredit Leasing has managed to overcome a lot of challenges and difficulties together with the entire leasing market but it is growing moderately and steadily,” commented Levon Hampartzoumian, Chief Executive Officer of UniCredit Bulbank.

Over the last year, lease machines and equipment were most often used in metalworking, agriculture, food processing industry, the production of fast-moving goods and in export-oriented production companies in the machine building sector, etc. Individual clients used lease financing mainly for the purchase of cars and light trucks, as well as medical and dentistry equipment.

In the last two years, UniCredit Leasing has restructured the liabilities of over 60% of the non-performing leasing contracts and in this way a large part of the clients managed to recover their activity, to continue servicing their liabilities and to acquire title to the assets. In case of inability for payment, the assets under the leasing contracts are offered for a secondary sale at market value. In such cases, the main aim of UniCredit Leasing is to sell the asset at the best price possible and to have the client’s liabilities repaid in the maximum amount.

For the period 2009-2011 over 1 800 assets were sold by the company on the secondary market and the greatest interest was in cars, light and heavy cargo vehicles. There is less interest in construction and production equipment.

Over the last three years the total amount of the receivables under leasing contracts decreased by 39%, compared to 2008, down to BGN 3.55 billion. Following the sharp rise in 2009, the amount of outstanding receivables remained relatively stable in absolute terms and their relative share reached 21%.

“Passenger cars are undoubtedly the most common and appropriate asset for operational leasing, and in 2011 the demand for this product and the number of concluded deals reached the levels registered before the beginning of the crisis,” said Rumen Invanchev, Chief Executive Officer of UniCredit Leasing. In his opinion, this allows for the developing of a new market niche in the future in view of inquires related to opportunities for operational leasing of real property, computer equipment, etc.

Thanks to the positive trends in the development of the agricultural sector, healthcare, light industry, international transport, etc. in 2011 the demand for heavy cargo vehicles, machines and equipment significantly surpassed the levels of 2010 and is comparable to or even higher than the levels reached in 2009. In the case of the so-called “other” assets, the investment focus changed over the years from yachts and airplanes to projects in the field of renewable energy sources (wind and photovoltaic power plants).

More information for media:

UniCredit Bulbank, Identity and Communications

Svilena Nikolova, 0884 322 692, twjmfob/ojlpmpwbAvojdsfejumfbtjoh/ch

UniCredit Bulbank, Identity & Communications Department

Viktoria Blajeva, Phone: + 359 2 9264 993, wjlj/ebwjepwbAvojdsfejuhspvq/ch

Magdalena Ivanova, Phone: + 359 2 9232 528, nbhebmfob/jwbopwbAvojdsfejuhspvq/ch