22 January 2008, LONDON - JSC Russian Railways has received the first Tranche, under EUR 292.1 million financing package, signed with Deutsche Bank AG, which will be used to refinance the designing, construction and delivery of eight high-speed railway trains to be supplied by Siemens AG.
Deutsche Bank acted as sole mandated arranger and lender of this financing package which comprises two loan facilities: a 13.5-year EUR 249.8 million loan facility which enjoys insurance cover provided by EULER HERMES Kreditversicherungs-AG, Hamburg, acting on behalf and for the account of the Federal Republic of Germany and a 7-year EUR 42.3 million complementary loan facility.
The Hermes covered loan serves to refinance up to 85% of the supplies and services under the Siemens contract as well as up to 100% of the Hermes insurance premium. The complementary loan will be used to refinance the 15% down-payment under the Siemens contract as well as ancillary costs.
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About JSC Russian Railways
JSC Russian Railways, established in 2003 (instead of former Ministry of railway transportation) is one of the biggest railway companies in the world with 85,500 km of track and 1.3 million employees. Almost 1.3 billion passengers travel via Russian Railways annually as well as 1.3 billion tons of freight. Russian Railways accounts for over 3.6 % of Russia’s GDP and handles almost 80% of all transportation in Russia.
Russian Railways’ financial results in 2006 reflect the successful restructuring of the Company and the reforming of the rail sector generally. According to International Accounting Standards (IAS), consolidated revenues of the holding in 2006 were 877.9 billion roubles (US$33.4 billions), an increase of 17.2% compared to the previous year. Consolidated net profit in 2006 was 139.8 billion roubles(US$5.3 billion).
About Deutsche Bank
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 77,920 employees in 75 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.