3 June 2010
Brunswick Rail to place USD 300 mln order for railcars with Ukrainian producers
Brunswick Rail, Russian freight railcar rolling stock operator, is in negotiations with Ukrainian railcar manufacturers over the purchase of more than 7 ths new railcars, daily Kommersant reported. Brunswick Rail is planning to purchase 5.5 ths railcars by attracting USD 300 mln of debt from the EBRD and the IFC and is seeking additional loans to order the remaining 1.5 ths railcars. According to a Brunswick Rail’s representative, the order will be placed with Ukrainian wagon manufacturers within 1.5-2 years. Yegor Samusenko: Brunswick Rail is a long-term partner of Stakhaniv Railcar (UX: SVGZ UK), which we think will be the first candidate for getting the order. Though, given that currently Stakhaniv Railcar’s capacities are nearly fully loaded, we think the order will be placed both with Stakhaniv Railcar and Kryukiv Wagon (UX: KVBZ UK) plants. The order’s size equals ~ 7 months of production of Stakhaniv Railcar and Kryukiv Wagon combined. We anticipate positive reaction of the market.