EBRD to grant USD 75 mln in loans to private Ukrainian company for freight railcars

Ukrainian private company Interlizinvest, which owns 1,200 railcars, is in line to receive USD 75 mln in loans from the European Bank for Reconstruction and Development to purchase freight railcars. The issue is on the agenda of an EBRD board meeting on July 12, 2011. In all,  Interlizinvest plans to buy 3,000 freight railcars; the EBRD loan would cover about 30% of these purchases at current prices. Vitaly Gorovoy: We expect Interlizinvest to begin its purchases no earlier than 4Q11. Key potential order recipients are Kryukiv Wagon (UX: KVBZ UK) and Stakhaniv Wagon (UX: SVGZ UK). However, we do not view the deal as a market catalyst as it appears the EBRD has opted to finance Interlizinvest rather than state railway Ukrzaliznytsya, implying impact on the overall volume of orders this year.