AB-leasing

Target Group

Business entities of the Kyrgyz Republic engaged in activities and registered in the Kyrgyz Republic in the form of individual entrepreneurs, peasant (farmer) household, municipal enterprises, commercial organizations, and other business entities that meet the requirements of the Credit Policy and other regulatory acts of OJSC “Aiyl Bank” regarding leasing/lending.

Purpose of leasing

The following types of new (no previously used) machinery/ trailed -equipment:

1) All types of agricultural machinery and mounted/ trailed equipment;

2) Speсialized machinery;

3) All types of vehicles;

4) All types of industrial, technological, production, and other equipment;

5) Any non-consumable assets used for entrepreneurial purposes, including enterprise complexes, buildings, structures, equipment, vehicles, and other movable and immovable property that do not contradict the requirements of the Bank’s Credit Policy (except for fast-wearing items).

leasing Currency

- Kyrgyz som (KGS);
- United States dollar (USD).

Leasing Term

- up to 5 years – for all types of trucks:
- up to 6 years – for all other leasing objects.

Interest Rates

The interest rate varies depending on the purpose of leasing, the leasing amount (total cost of the leasing object), the leasing currency, and the size of the lessee’s own contribution (as a percentage of the leasing amount).  

   a) Specialized machinery, commercial real estate, motor vehicles, non-agricultural equipment:

In Kyrgyz som:

In US dollars:

   б) Agricultural machinery and equipment for processing agricultural products and food production:  

     - 16 (sixteen percent) % per annum in Kyrgyz som;
     - 10 (ten percent) % per annum in US dollars.

Lessee’s Own contribution to the Project  

The lessee’s own contribution in monetary terms must be at least 10% of the cost leasing object, excluding other direct expenses.  

The contributed own funds will subsequently be used as the first leasing payment.   
In addition to the own contribution, the lessee is obliged to separately pay the direct costs related to customs clearance and registration, as well as the insurance premium for the entire leasing period.  

Collateral/ Security for Leasing

1. If the own contribution is 30 % or more of the cost of the leasing object, the leasing object itself serves as the repayment guarantee;

2.  If the own contribution is less than 30% of the cost of the leasing object, additional collateral in the form of immovable property must be provided in accordance with the Bank’s Collateral Policy. When the own contribution is below 30%, the additional collateral must cover the difference between 30% and the actually contributed amount;  

3. When acquiring specific equipment that is designed and installed permanently in a predetermined location, building, and/or land, the lessee is additionally obliged to pledge the building and the land where the equipment will be installed, together with the relevant permits from state authorities for conducting business in that building.

Leasing Repayment Schedule

• Interest payments – on a monthly or quarterly basis;
• Principle amount (for agricultural and industrial machinery/ equipment) – in accordance with the cash flows of the lessee’s business, but at least twice a year); Principle amount (to leasing objects of other purposes) – on a monthly or quarterly basis.

Grace Period

• On interest – up to 3 months;  
• On principal (for agricultural and industrial machinery/ equipment) – up to 6 months;  
• On principal (for leasing objects of other purposes) – up to 3 months.

Insurance of the leasing object

The leasing object must be insured by the client against all possible risks, including loss, theft, damage, deterioration, and premature wear.

Insurance of mounted equipment that is less susceptible to damage and wear and whose value does not exceed 1, 500, 000 som is not mandatory.

Restrictions

The lessee has no right to sublease the leasing object.

Special Conditions    

• Various fees, service costs, taxes, and duties related to the registration of the leasing object shall be paid by the lessee;  
• The lessee bears responsibility for the safety and proper use of the leasing object;  
• The lessee obliged to arrange an annual technical inspection of the equipment at its own expense;
• In the absence of a supplier’s representative and service center for the leasing object, and upon agreement with the lessee, responsibility for warranty and post-warranty maintenance of the leasing object shall be assigned to the lessee.