Russian Railways Receives $420 Million Loan from Russia’s State Bank

JSC Russian Railways received $420 million in late March as part of an agreement for a 5-year unsecured syndicated loan.

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The company, being an active participant in the public borrowing market (the share in the loan portfolio at the end of 2016 was 99%), is taking active steps to improve its debt structure, including the diversification of sources and financing instruments.
JSC Russian Railways started on the syndicated international lending market after a 9-year break. Interest in the company as a first-class borrower from the banking community is confirmed by a record low interest rate for similar transactions in recent years.
The authorized leading organizers of the loan were ING Bank N.V., UniCredit S.p.A. and a number of European banks; the loan agent is UniCredit Bank AG (London branch).
The funds raised under the syndicated loan will provide the partial refinancing of the debut issue of the company’s Eurobonds placed in 2010.