IFC, a member of the World Bank Group, is providing Globaltrans, the largest privately owned freight rail transportation group operating in Russia, with a $30 million loan to partially finance expansion of the group’s rolling stock fleet, addressing the growing demand for freight rail transportation services and supporting economic growth.
The loan will contribute to the development of Russia’s railway sector and help to sustain its competitiveness.
Rashad Kaldany, IFC Vice President for Asia, Eastern Europe, Middle East and North Africa, said, “We are very pleased to continue supporting our long-term strategic partner, Globaltrans, to aid the development of rail freight transportation infrastructure, which is extremely important for economic recovery and growth in Russia. Through this project, we will not only expand supply of transportation services, but also support employment and production capacity at railcar manufacturers in Russia and neighboring countries.”
Sergey Maltsev, Chief Executive Officer of Globaltrans, said, “We are pleased to take this new step in our partnership with IFC. This transaction represents a vote of confidence from IFC in Globaltrans and sets a positive precedent for future investments in Russia’s infrastructure.”
This is IFC’s second loan to Globaltrans. In 2003, IFC extended $40 million of debt financing to support expansion of the group’s oil tank car and locomotive fleets.
Infrastructure is one of IFC’s priority sectors in Russia, with a current investment portfolio of over $200 million in 12 projects.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org
Globaltrans is the largest privately owned freight rail transportation group in Russia by size of rolling stock fleet, and the first and only such group to have an international listing. The group provides freight rail transportation, railcar leasing, and ancillary services to more than 450 clients in Russia, CIS countries, and the Baltic states. Globaltrans' global depositary receipts have been listed on the Main Market of the London Stock Exchange under the ticker GLTR since May 2008. For more information, visit www.globaltrans.com.
New Forwarding Company has rendered the targeted support to the Russian Army. The company has presented and delivered computer hardware to the Red Banner Guard Missile Division of RFSP in the city of Kozelsk.
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