Russia's Brunswick Rail borrows further $120mn
MOSCOW: Russian railcar leasing firm Brunswick Rail said on Tuesday it has borrowed an extra $120 million to step up its search for new cars as it seeks to take advantage of Russia's need to modernise its vast rail network.
The company said the loan had been led by development banks the European Bank for Reconstruction and Development (EBRD) and International Finance Corp (IFC) -- a unit of the World Bank.
Its total loan facilities with the two agencies is now around $420 million, the company said.
Brunswick is considering the launch of a $500 million Eurobond by the year end to continue its expansion plan, two sources told Reuters last month, ahead of a potential initial public share offer (IPO) in 2012.
Russian companies have raised around $4.5 billion from IPOs in the year to date, compared with $5.5 billion for the whole of 2010, but recent volatile stock-markets have caused many to reconsider their plans.
A spokesman for Brunswick Rail declined to comment on the Eurobond or IPO plans.
Copyright Reuters, 2011
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