Moscow, Russia, October 26, 2012—IFC,
a member of the World Bank Group, is investing 25 million in Brunswick
Rail’s debut $600 million Eurobond, which will promote private sector
participation in infrastructure and bolster the development of the Russian
The investment supports Brunswick Rail’s
strategy of diversifying its financial resources and simplifying its capital
structure. The Eurobond placement helps one of Russia’s leading freight-railcar
operating lessors to transition from project finance to corporate finance.
“This investment will further promote
competition in the Russian transportation-infrastructure sector and expand
the supply of modern railcars for Russian companies, which in turn will
foster economic development in remote regions of Russia,” said Tomasz
Telma, IFC Director for Europe and Central Asia. “It will also deepen
Russia’s Eurobond market and pave the way for issuances from smaller,
privately owned companies.”
Also acting as investor, the EBRD has
also invested $25 million in the same Eurobond issue in a parallel operation.
This is the IFC’s sixth investment
in the Brunswick Rail. Since 2006, IFC has supported the development and
expansion of Brunswick Rail operations with debt and equity finance. The
company was founded in 2004 and now has a fleet of more than 22,000 railcars.
Russia became a member of IFC in 1993.
Since then, IFC’s investments in Russia have totaled $10.1 billion, including
$3.1 billion in syndicated loans, in 270 projects across a variety of sectors.
In fiscal year 2012, IFC invested $1.2 billion in Russia, including $465.5
million in syndicated loans.
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, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.