Translated version of this PSD: Russian
The purpose of the project is to support the development of the client by investing in a bespoke equity hybrid instrument and contributing to the success of a possible future IPO by the client, as well as through the enhancement of corporate standards.
The Project will finance the expansion of the client’s rail activities including the acquisition of new generation railcars and value accretive acquisitions in the rail sector as well as potential participation by the client in the privatisation of railcar R&M companies.
The transition impact of the project will be derived from two main sources:
- Creating new financing sources by providing support ahead of a possible future IPO of a private player promoting international corporate governance standards. The Bank will make available a new bespoke instrument to the client complementing its current financial structure which will allow it to continue expanding prior to any IPO. The Project will also support the Company in further improving certain corporate governance aspects in preparation for a possible IPO, including through the introduction of a dividend policy and the streamlining of its corporate structure.
- Widening private ownership by supporting the client’s potential participation in the privatisation of railcar R&M companies. Following Brunswick’s commitment to quality business standards, regulations and legal environment, the client’s potential participation in privatisations could set new standards for additional segments of the Russian railway industry.
Brunswick Rail Limited, a leading, dedicated freight railcar operating lessor in Russia, which has a fleet of more than 24,000 freight railcars and serves a number of key clients from core Russian industries, including transportation companies.
Up to US$ 150 million investment in the client’s preferred shares.
US$ 400 million.
Categorised B. The Company developed and is implementing environmental safety and corporate social responsibility policies, disclosed to the public on their website. The Company has also successfully implemented an Environmental and Social Action Plan (ESAP) agreed within previous transactions.
While the acquisition and leasing of railcars is not directly associated with any environmental impacts, potential acquisition of depots and other operational facilities, may involve contamination liabilities. Therefore the Bank will covenant the development and implementation of procedures for identification and valuation of all environmental responsibilities/liabilities of future assets to enable a) initial assessment and b) annual verification of the size of both under IFRS accounting rules.
The Company will also be required to maintain adequate provisions and contingent liabilities in the annual accounts for reasonably anticipated clean-up and rehabilitation costs.
Mr. Nicolas Pascault
Paveletskaya sq.2/2, 12th floor
For business opportunities or procurement, contact the client company.
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Tel: +44 20 7338 7168
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