Moscow, Russia, June 5, 2012—IFC, a
member of the World Bank Group, is providing with the participation of
four of Brunswick Rail’s core relationship banks $250 million of 5-year
debt financing to two of Brunswick Rail’s Russian operating subsidiaries.
The funds are to support the development of rail transportation services
in Russia and facilitate the company’s plans to access debt capital markets.
The financing consists of a $70 million loan
for IFC’s own account and a $180 million loan with the participation of
four international commercial banks ING Bank, Raiffeisen Bank International,
Société Générale and UniCredit all long-term partners of Brunswick Rail.
The proceeds will help Brunswick Rail continue its development program
despite uncertainty in European financial markets.
Nicolas Pascault, Brunswick Rail Partner
and CFO, said, “Our long-standing partnership with IFC, as well as other
leading international commercial banks, has been important to getting us
to where we are today, and will continue to play a major role in
our growth going forward. This is important recognition of the financial
strength and stability of our business as we continue the rapid expansion
of our existing railcar fleet.”
Gulrez Hoda, IFC Infrastructure Director
for Europe, Central Asia, the Middle East and North Africa, said, “Rail
transportation is vital to the Russian economy, accounting for about 85
percent of the country’s freight transport. With the country’s fleet
ageing, and many railcars reaching the end of their useful life, Brunswick
Rail’s strategy to expand its fleet with new, modern railcars will help
avoid a shortage of supply. The fleet expansion also will mitigate the
risk of an increase in carbon emissions and air pollution from trucking
This investment builds on IFC’s relationship
with Brunswick Rail, which began in 2006, and contributes to IFC’s strategy
in Russia to support private sector development and encourage economic
growth. The country became a member and shareholder of IFC in 1993. Since
then, IFC has invested nearly $6 billion in Russia, including $1.5 billion
in syndicated loans, and is involved in 250 projects across a variety of
sectors. IFC’s investment portfolio in Russia stands at $2.54 billion,
the third-largest country exposure for IFC globally.
IFC, a member of the World Bank Group, is
the largest global development institution focused exclusively on the private
sector. We help developing countries achieve sustainable growth by financing
investment, providing advisory services to businesses and governments,
and mobilizing capital in the international financial markets. In fiscal
2011, amid economic uncertainty across the globe, we helped our clients
create jobs, strengthen environmental performance, and contribute to their
local communities—all while driving our investments to an all-time high
of nearly $19 billion. For more information, visit www.ifc.org.
About Brunswick Rail
Brunswick Rail is one of the leading Russian
freight railcar operating lessors with a fleet of over 22,000 modern railcars.
Independence, a strong strategic track record and in-depth market knowledge
have allowed Brunswick Rail to earn its position as a reliable partner
for many of Russia’s blue-chip industrial and transportation companies
by helping them in meeting their growing transportation needs. The
majority of Brunswick Rail's railcars are gondolas (72%) and mineral hoppers
(15%), with boxcars, platforms and tank cars making up the remainder (13%).
To learn more about Brunswick Rail, visit eng.brunswickrail.com