Debt and Lender Information
Raising outside capital is done in accordance with the Company’s Loan Programme, which provides for various instruments to finance the operations of Russian Railways, including using syndicated and bilateral loans, rouble bonds and Euro bonds, as well as leasing etc.
The Loan Programme is an essential part of the Company’s integrated financial management system and is supplemented by instruments to hedge risks, an investment and financial assets management system and procedures to manage working capital and liquidity etc.
All of the Company’s property, with the exception of assets limited to turnover as laid down in Russian Government Decree No. 57 dated 06.04.2004, is collateral for its loans and liabilities.
(a) Russian Railways does not have the right to transfer by leasing, allowing free use, placing under beneficial ownership or using as collateral the following assets in its Charter Capital:
- main railway lines with all the attendant equipment and facilities, signalling, centralisation and blocking systems, power supplies, technological links intended for internal production and the management of technological processes on rail transport;
- little-used railway lines, sections and stations with defence functions;
- management information systems for rail transport and freight management systems;
- engines, coaches and attendant facilities with defence functions;
- objects subject to mobilisation, objects for civil defence, mobilised capacity preserved and unused, mobilised reserves, objects of material value in the mobilised reserve;
- rolling stock for the implementation of special rail shipments;
- objects and assets for accident and repair work.
(b) Russian Railways, in agreement with the Russian Government and according to government guidelines, has the right to transfer as collateral and also to sell and otherwise dispose of assets which amount to a transfer of ownership the following assets:
- shares in subsidiaries run as single business entities;
- little-used railway lines, sections and stations with all the attendant equipment and facilities, as well as plots of land upon which the listed objects and facilities stand (with the exception of little-used railway lines, sections and stations with defence functions);
- property relating to rail transport infrastructure intended for general use with the exception of objects listed in point (a).
The list of assets limited to turnover as indicated in points a) and b) are defined by the Russian Government.
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