Tractors will be led by capital – Newspaper Kommersant No. 8 (7453) dated 01/18/2023

The state-owned Rosagroleasing, which specializes in the leasing of agricultural machinery, raised 10 billion rubles in capital. In six months, this is the second state-owned company in the industry to receive capital funds. Private lessors mainly attract more expensive bank loans or place bonded loans. But the main problem on the market is the shortage of leasing items, not funds.

On January 17, Rosagroleasing announced the completion of the placement by private subscription of 20 million shares for 10 billion rubles. “South-funded investments will allow farmers to receive at least 1.7 thousand additional units of agricultural equipment on preferential terms in 2023,” Rosagroleasing explained. Last year, thanks to preferential leasing, farmers were able to purchase 12.7 thousand agricultural machines. At the same time, in March 2022, the company was recapitalized by 12 billion rubles.

The company’s share, according to its estimates, in the total supply of self-propelled agricultural machinery (tractors and combines) reached 19% at the end of last year. “Agribusiness has been resilient in 2022, but this industry is also facing the need for import substitution. Previously, German and American brands were popular (John Deere, Claas, Buhler, etc.). There are not enough used models of these brands on the market, and those that are do not always meet the requirements,” explains Dmitry Alexandrov, Executive Director of Ivolga Capital Investment Company. Russian and Chinese manufacturers are becoming more and more relevant, he adds.

According to Expert RA for the first nine months of 2022, the agricultural machinery segment accounted for 5.5% of the volume of new business of leasing companies, which is 2 p.p. more than in 2021. In general, the leasing market showed a drop following the results of three quarters: the volume of new business amounted to 1.28 trillion rubles, 15% less than a year earlier (see Kommersant dated December 1, 2022). Agricultural machinery was one of four market segments showing growth in new business volumes. Rosagroleasing climbed to eighth place in terms of new business (45.5 billion rubles). The company’s portfolio grew by 34% to RUB 148.5 billion.

Additional capitalization affects state-owned leasing companies to a greater extent. So, in September 2022, the Ministry of Finance acquired STLC shares for almost 60 billion rubles. The transaction was made from the funds of the National Wealth Fund (see Kommersant dated September 12, 2022).

Independent leasing companies are in a more difficult position in terms of attracting resources. Companies that are not members of banking groups are forced to attract large loans. Small lessors are active in the bond market. “These funds are attracted at market rates, so that independent leasing companies have to compete not in terms of the cost of money, but in terms of the efficiency and quality of their work,” notes Mr. Aleksandrov.

State-owned banks have a transfer rate for leasing companies included in the group, which can range from 4% to the level of the key rate (7.5%). On the market, large leasing companies can attract loans at 10% per annum, medium – at 15% per annum, Dmitry Alexandrov clarifies. According to Expert RA, 69% of the funding of the leasing industry comes from bank lending, 15% from advances, 10% from equity and 3% from bonds.

However, the problem of capital is not as acute for the leasing industry as, for example, for banking, believes Valery Piven, head of the financial institutions rating group at ACRA. Most leasing companies found themselves in a difficult situation in 2022 amid a shortage of leasing items (see Kommersant dated May 28, 2022 and July 25, 2022), difficulties with new logistics and reorientation to Asian brands.

Polina Trifonova