FESCO Group to raise USD 90 mln debt finance
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On October 6, 2008 “Transgarant”, a FESCO Group rail company, signed A USD 90 mln syndicated loan transaction, the company’s press center informs.
The loan is organized by Sumitomo Mitsui Banking Corporation Europe Ltd, a UK subsidiary of Sumitomo Mitsui Banking Corporation, with ING Bank N.V. and HSH Nordbank AG joining the organizer in the syndicate. The loan is secured by the guarantee issued by Far-Eastern Shipping Plc, the Group’s issuer of shares, and backed-up by the pledge of rail cars.
The loan proceeds are to be invested in the acquisition of new rolling stock as part of the Group’s rail investment program for 2008. In addition, part of the funds will be used to redeem outstanding short-term debt previously raised to finance rolling stock acquisition.