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
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.
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.