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 capital markets.
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.
About IFC
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
.
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