Press Releases

IFC Partners with Brunswick Rail to Supply Railcars, Boost Russia’s Economy

IFC, in Moscow:
Nezhdana Bukova
Phone: +7 985 411 7555

Brunswick Rail:
Dmitry Bovykin
Phone: +7 495 783 67 00

Moscow, Russia, December 2, 2010—IFC, a member of the World Bank Group, is providing $125 million of financing to Brunswick Rail to support the development of transportation services in Russia and support long-term economic growth in remote regions of the country.

The investment, $25 million of equity in Brunswick Rail and $100 million of debt finance, including a $50 million syndicated loan to its Brunswick Wagon Leasing subsidiary, will allow the group to expand its fleet of railcars and meet the growing demand for rail transport. This investment builds on IFC’s existing relationship with Brunswick Rail, which began in 2006.

“IFC considers infrastructure as one of our main corporate priorities in Russia,” said Snezana Stoiljkovic, IFC Director for Eastern Europe and Central Asia. “Rail transport is in our focus as it allows goods to move quickly and effectively through Russia’s vast territory and produces much less greenhouse gas emissions than trucks, making it more environmentally friendly.”

IFC’s participation also provided significant comfort to the other investors, facilitating the successful syndication of the 5-year loan from commercial banks. Commercial banks that participated in the syndication include: UniCredit Group, Societe Generale, Raiffeisen Bank International AG, ING Bank NV and KfW Ipex-Bank GmbH. The European Bank for Reconstruction and Development, owned by 61 countries and two intergovernmental institutions, has raised an additional $200 million of debt financing in conjunction with the IFC loan.

“As long-term partners, we share common vision on the factors that are critical for future development of Russia. IFC’s support will help us optimize our operations and achieve the critical mass we need to make a difference in the sector,” said Vladimir Lelekov, CEO of Brunswick Rail.

IFC’s current investment portfolio in Russian infrastructure exceeds $780 million.  

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit

About Brunswick Rail  
Brunswick Rail is Russia’s leading freight railcar operating lessor with a fleet of 12,500 modern railcars. A broad and committed shareholder base, access to long-term financing, efficient business processes and in-depth market knowledge has allowed Brunswick Rail to earn a position as a reliable partner for many Russian blue chip industrial and transportation companies.