Business & Finance

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 it

Published August 23, 2011 Updated August 23, 2011 07:21am

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By Syed Murtaza Gheblehzadeh

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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.

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