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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 freight cargo.”
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.
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, 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
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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
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