Moscow, 02 October 2010
The Macquarie Renaissance Infrastructure Fund (MRIF or the Fund) has agreed to invest US$125 million in Brunswick Rail Limited (Brunswick Rail or the Company) through a combination of equity and mezzanine debt with equity conversion rights. The equity investment will give an initial 16% interest in Russia’s largest privately owned rail rolling stock leasing company and a board position.
The investment is part of a capital raising of equity and debt conducted by Brunswick Rail to raise a total of US$500 million to support the Company’s significant expansion plans.
The strength of the sector, and of the Company itself, is reflected in the strong organic growth Brunswick Rail has achieved since it began operations in 2004. The Company started with 600 rail cars and today has more than 12,000 with significant potential for growth as Russia’s rail volumes grow and the fledgling leasing market develops.
Andrew Cowley, the CEO of MRIF, said, ”The rail industry is the backbone of Russia’s transport infrastructure accounting for around 85 per cent of total freight transport in Russia, and playing an essential role in its economic development. With support from our blue chip investors, who include Vnesheconombank as cornerstone investor, EBRD, IFC and Kazyna Capital Management, we will help to ensure the Company’s growth and its strategic plans to invest in new generation rail cars are soundly financed.”
“Brunswick Rail is very pleased to welcome MRIF as its shareholder and strategic partner. The Fund’s support will be invaluable as we continue to expand our fleet and grow our business through greater penetration of leasing in the region’s rail market,” said Vladimir Lelekov, CEO of Brunswick Rail.
“Brunswick Rail is the Fund’s first investment, and demonstrates the momentum MRIF is building,” said Stephen Jennings, Renaissance Group CEO. “The Fund is successfully leveraging Renaissance’s depth of experience in Russia, Macquarie’s global leadership in the infrastructure sector and the quality of the Fund’s investor base to maximise its advantage as the region’s first dedicated CIS infrastructure fund.”
Renaissance Group is an independent group of investment banking, asset and wealth management, merchant banking, and consumer finance companies specializing in high-opportunity emerging markets. Renaissance Group operates in Russia, Ukraine, Kazakhstan, Africa, Hong Kong, the United Kingdom, the United States and Cyprus.