Finance
Armenia: US$15·2m has become available for repairs to track and rolling stock as a result of a $40m transport credit awarded to the government in July by the World Bank.
Belgium: A further loan worth 112·5m euros towards the construction of high speed routes from Brussels to Antwerpen and Liège has been agreed by the European Investment Bank. The loan to Financière TGV is the final tranche of EIB funding worth 773m euros.
Canada: Operating income earned by Canadian Pacific Railway in the second quarter of 2000 rose to C$204m, compared to C$158m a year earlier, but excluding a C$501m charge for 1900 redundancies. As both are now profitable, the St Lawrence & Hudson and Delaware & Hudson subsidiaries are to be integrated within CP.
China: Goldman Sachs, HSBC Investment Bank and Warburg Dillon Read are to co-ordinate an initial public share offering that will partially privatise MTR Corp this year. N M Rothschild is advising MTR. Spread over two years, the sale is expected to raise HK$30bn.
MTR Corp concluded on August 8 a HK$1·4bn revolving credit and term loan facility with a group of seven Japanese banks. Cash is available for drawdown during the first three years, after which it becomes a term loan maturing in 2005.
Ethiopia: Aid worth US$40m is being used by the Djibouti-Ethiopian Railway to upgrade track and structures between Dire Dawa and Dewelle for higher axleloads.
Europe: AAE Wagon Finance has secured credits totalling 350m euros to fund 7000 wagons for hire. Senior creditor is the European Investment Bank lending 105m euros, accompanied by CIBC World Markets of Canada and KfW of Germany.
Eurotunnel reported operating revenue down to £277m in the first half of 2000 compared to £318m reported a year earlier. Passenger business is about 20% down due to the ending of duty-free sales within the European Union on July 1 1999, but 42% more lorries used the shuttle.
Romania: The European Union agreed in July to pay grants worth 232m euros for upgrading a section of CFR’s main line between Bucaresti and Fetesti, en route to the Black Sea port of Constantza, and 43m euros for the Bucaresti - Giurgiu line. There will be co-financing from EIB.
Ukraine: A credit worth US$60m over three years has been secured by Ukrainian Railways to upgrade sections of the main line between Kyiv and L’viv, allowing the maximum speed to be raised to 140 km/h. Repayments are to be spread over 15 years starting in 2003.
