Debt Instruments of Transport Leasing Companies Funding

Abstract

The objective of the study is to analyze the whole range of issues related to attracting corporate financing in the debt capital market, including a description of structural features of financing leasing companies, such as the currency of financing, the use of financial instruments with a fixed interest rate, the need for matching assets and liabilities of the company, in terms of urgency.
The article discusses the debt strategies of Russian leasing companies specializing in vehicles leasing. The organization of attracting funding by transport leasing companies is important for development of the entire transport industry in Russia. Bilateral bank loans, instruments of international development banks, syndicated loans and ruble bond issues are analyzed together with structural elements, investment and transactional features. Each financial instrument is followed by an example of implementation of a transaction. A comparison of the main financial instruments is followed by identification of the main advantages and disadvantages of their use for corporate financing.
The methods used in the article are based on a structural approach to financing, which in turn is based on the correspondence of the financial instruments used and the goals for using cash (including replenishment of working capital, refinancing, capital costs).
The main conclusion of the article is that for leasing companies the optimal financial solution is to create a capital structure by combining loans and bonds.