Russian Rail Firm Completes Financing Plan

5 December 2010 (Last Updated December 5th, 2010 18:30)

Russian railcar provider Brunswick Rail has revealed that it has completed its $500m financing plan to support the company's expansion. The funds will be invested primarily in building up the company’s freight railcar fleet. The finance was raised through a combination of equity

Russian railcar provider Brunswick Rail has revealed that it has completed its $500m financing plan to support the company's expansion.

The funds will be invested primarily in building up the company’s freight railcar fleet.

The finance was raised through a combination of equity, mezzanine and debt with capital from a number of international investors and banks.

The Macquarie Renaissance Infrastructure Fund, with Russia’s Vnesheconombank as the cornerstone investor, has invested $125m in Brunswick Rail, which gives the company an initial 16% stake and a board position.

Other participants include Washington-based International Finance Corporation, which contributed $25m, and another $300m of debt financing through two syndicates of $200m and $100m led by EBRD and IFC, respectively.

Macquarie Renaissance is a joint venture between infrastructure investors Macquarie Group and Renaissance Capital in Russia.