Brunswick Rail (f. Bravo)

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Translated version of this PSD: Russian The EBRD participated in Brunswick Rail’s USD 600 million Eurobond debut with an amount of USD 25 million. The proceeds of the Eurobond will mainly be used for repaying any outstanding amounts under the existing EBRD and IFC loan facilities and for the acquisition of railcars. The EBRD participation in the Eurobond will continue to support the transition objectives of the original project, which were to support greater private sector participation in the rail sector, promote increased competition and demonstrate the use of rail car leasing as a new product in Russia. These objectives will be strengthened in a number of ways by this new transaction. As a debut issue, the Eurobond will open up a new investor base and introduce Brunswick Rail to international capital markets. By using part of the Eurobond proceeds to refinance the existing EBRD and IFC loan facilities, Brunswick Rail balance sheet will be streamlined, removing the ring-fenced project finance structures. Finally, the acquisition of railcars from the remainder of the bond proceeds, including new generation railcars, will increase competition and role of the private sector and demonstrate the use of a new energy efficient product on the Russian market. Brunswick Rail Limited, a leading, dedicated freight railcar operating lessor in Russia, which operates a fleet of more than 22,000 freight railcars and serves a number of key clients from core Russian industries, including transportation companies. USD 25 million Eurobond subscription. USD 600 million. The Project has been categorised B in line with the Environmental and Social Policy (2008). The railcars to be purchased with the Bond proceeds will be modern and compliant with Russian regulatory and technical requirements, which are compatible with EU environmental and noise standards for railcars and freight wagons. The Company's operations are in compliance with relevant environmental, health, safety and labour regulations. The Company’ Environmental Strategy includes commitments to identifying potentially affected parties; analysis of issues and identification of magnitude of impacts and developing relevant action plans. The Company conducts assessments of risks associated with the use of railcars. The Company's lease contracts contain a clause binding lessees to strictly following manufacturers' specifications for use of rail cars. The Company also imposes contractual limitations on types of hazardous cargo that can be transported in their leased railcars and checks information on types of transported cargo on a monthly basis The Company has a programme in place for scrapping of old railcars and utilisation of spare parts and wheel-sets and contracts a licensed third-party for collection and utilisation of spare parts. The Company has software in place allowing extracting information on the lessee and specific lease data; individual railcar plate number, model and manufacturing date; technical status; schedule of required maintenance and repairs. The Company also monitors location of leased railcars; movement route; type and volume of transported cargo and other data through the Russian Railways (RZD) Data Processing Centre. The Company will comply with The Bank’s Performance Requirements and submit annual environmental and social reports to the Bank. None. Mr. Nicolas Pascault, Partner /CFO 115054, Russia, Moscow, Paveletskaya sq.2/2, 12th floor E-mail: npascault@brunswickrail.com