The European Bank for Reconstruction and Development (EBRD) has granted a seven-year, fixed-interest senior loan of 650 million rubles to New Forwarding Company (NPK), a subsidiary of Globaltrans Investment Plc. The borrower will use the funds for the purchase of new railcars in the rolling stock upgrade program in Russia, the EBRD press release said.
"NPK is planning to buy up to 5,000 rail gondola cars in 2010-2011 and this EBRD financing will fund part of those purchases,” the bank press release said.
This local currency loan is an example of how the EBRD is helping prudent Russian clients mitigate currency risk by providing long-term rouble debt matching their rouble revenues, the EBRD’s Transport Director, Sue Barrett said after the NPK loan signing.
"NPK is planning to buy up to 5,000 rail gondola cars in 2010-2011 and this EBRD financing will fund part of those purchases,” the bank press release said.
This local currency loan is an example of how the EBRD is helping prudent Russian clients mitigate currency risk by providing long-term rouble debt matching their rouble revenues, the EBRD’s Transport Director, Sue Barrett said after the NPK loan signing.
No other financial details of the NPK transaction were disclosed.
Russia, which has the world’s second largest railway network after the United States, is estimated to need between 400,000 and 780,000 new railcars over the next 10 years. Private ownership of the railcar fleet stands currently above 40% and is due to rise to nearly 50%, according to the railway sector’s medium to long-term strategies.
OJSC New Forwarding Company (NPK), a wholly-owned subsidiary of Globaltrans Investment Plc, is a Cyprus-registered holding company which consolidates the freight rail transportation business of Russia’s N-Trans group. In 2008, the EBRD invested USD 49.55 million to acquire a minority stake in Globaltrans at its IPO.
Globaltrans is the largest privately owned group of companies by the size of its own rolling stock in Russia and the only private group that operates on the Russian market of rail freight traffic, listed on international stock exchanges. The Group provides rail freight transportation, lease of rolling stock and other services to more than 450 customers in Russia, CIS and Baltic countries. Globaltrans’ 1H 2010 net income (IFRS) surged 2,2 times - to $ 95.9 million
OJSC New Forwarding Company (NPK), a wholly-owned subsidiary of Globaltrans Investment Plc, is a Cyprus-registered holding company which consolidates the freight rail transportation business of Russia’s N-Trans group. In 2008, the EBRD invested USD 49.55 million to acquire a minority stake in Globaltrans at its IPO.
Globaltrans is the largest privately owned group of companies by the size of its own rolling stock in Russia and the only private group that operates on the Russian market of rail freight traffic, listed on international stock exchanges. The Group provides rail freight transportation, lease of rolling stock and other services to more than 450 customers in Russia, CIS and Baltic countries. Globaltrans’ 1H 2010 net income (IFRS) surged 2,2 times - to $ 95.9 million