CTL to consolidate subsidiaries and issue new bonds

The shareholders of leasing group Centralne Towarzystwo Leasingowe (CTL) are preparing to consolidate its subsidiaries. "We will create one company from Centralne, Wielkopolskie and Slaskie Towarzystwo Leasingowe," said CTL president Tadeusz Kobylanski. It has not yet been decided, though, which of the three will take over the others, or where to site the headquarters. "After the merger we will have joint administration and will save lots of money," said Kobylanski. Most of the group's revenue is generated by CTL, despite the fact that the company has only leased equipment worth zl. 42.3 million so far this year, far less than the zl. 128.2 million during the same period of 2001. "Banks have been reluctant for some time to lend money to leasing companies," explained the president. The company had planned to issue bonds in 2001, but decided to postpone the operation until the consolidation of the group is completed. Bond issues will amount to euro 400 million and will be targeted at western markets. The CTL group owns a majority stake in Bank Wschodni, which is in deep trouble, so the three are trying to dispose of their shares. The founder of Lukas Bank, Mariusz Lukasiewicz, might be interested in acquiring the institution. (Puls Biznesu, pp. 1, 3) M.M.