BSTDB finances the upgrade of the national railway system in Ukraine
Press Release | 30-Aug-2007
BSTDB provided USD 26 million as part of a USD 550 million syndicated corporate loan to Ukrainian railways, which will support and upgrade the Ukrainian national railway system.
The operation will involve the renovation of rolling stock, modernization of tracks, upgrade and renovation or railway stations, depots and bridges. It will further enhance the transportation capabilities of Ukrainian Railways and contribute to the development of economic cooperation between Ukraine and Armenia, Georgia, Moldova, Bulgaria and Romania who are actively using services from Ukrainian Railways. The operation also ensures solid mobilization of capital from outside the Black Sea region and exploits co-financing opportunities with international commercial institutions.
The Bookrunner of the syndicated debt facility is Barclays Capital (the investment banking division of Barclays Bank PLC), and BSTDB is a Mandated Lead Arranger together with Bayerische Landesbank, Erste Bank der oesterreichischen Sparkassen AG, HSBC Bank plc, ING Bank N.V. Dublin Branch, Morgan Stanley Bank International Limited, OTP Bank Plc and Sumitomo Mitsui Banking Corporation Europe Limited. 14 other commercial banks from different countries also participated in the syndication.
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The State Administration of Rail Transport of Ukraine “Ukrainian Railways”, established in December 1991 to centralize the management of railways transports in Ukraine, runs one of the most developed railway networks in Europe with a total track of approximately 22.000 km. Ukrainian Railways has developed a business plan outlining further modernization and restructuring and has been involved in the preparation of the railway industry reform programme.
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters is in Thessaloniki, Greece. With an authorized capital of SDR 1 billion (approx. USD 1,5 billion), BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects in the public and private sectors in its member countries. BSTDB is rated Long Term Baa1 and Short Term P2 by Moody’s.