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Draft:EUROFIMA

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EUROFIMA
Company typeEuropean company
Founded1956
Key people
OwnerDB, SNCF, FS, SNCB, NS, RENFE, SBB CFF FFS, CFL, CP, ÖBB, OSE, SJ, ŽS, ČD, HŽ, MÁV, ŽFBiH, ŽSSK, SŽ, BDŽ, ŽRSM, ŽPCG, TCDD, MŽ, DSB, Vy
Number of employees
28
Capital ratio41.3%
RatingS&P Global Ratings: AA (stable)

Moody’s: Aa2 (stable)

Fitch: AA (stable)
Websitewww.eurofima.org

EUROFIMA, European Company for the Financing of Railroad Rolling Stock, is a supranational organization based in Basel, Switzerland. Established in 1956, EUROFIMA operates with a non-profit maximizing mission to support the development of public service passenger rail transportation in its Contracting States. The organization assists railways and public transport authorities (PTA) in financing the renewal and modernization of railway equipment used for Public Service Obligation (PSO) contracts, leveraging favorable interest rates due to its strong AA credit rating.[1][2][3][4]

Organization[edit]

EUROFIMA was established on November 20, 1956, based on an international treaty (the “Convention”) between sovereign States (“Contracting States”). It was originally founded for a period of 50 years. The decision taken by the extraordinary General Assembly of February 1, 1984, to extend this period for an additional 50 years, until 2056, was approved by all Contracting States. EUROFIMA’s current shareholders are the railway operators/infrastructure managers of the Contracting States or the Contracting States themselves that are parties to the Convention.[2]

Despite its name, the non-profit has no affiliation to the European Union, unlike peer entities such as the European Investment Bank.[5]

Current Country Members and Shareholders[edit]

EUROFIMA’s shareholders consist of 26 organizations from 25 European countries[6][7]. The following table provides a breakdown of shareholders and their respective contributions to the registered share capital.

Breakdown of EUROFIMA’s shareholders
Actionnaire État contractant % du capital social
DB Deutsche Bahn AG Germany Germany 22.60%
SNCF France France 22.60%
FS Ferrovie dello Stato Italiane S.p.A. Italy Italy 13.50%
SNCB Belgium Belgium 9.80%
NS Nederlandse Spoorwegen Netherlands Netherlands 5.80%
RENFE Operadora Spain Spain 5.22%
SBB CFF FFS Swiss Federal Railways Switzerland Switzerland 5.00%
CFL Luxembourg National Railways Luxembourg Luxembourg 2.00%
CP Comboios de Portugal, E.P.E. P Portugal Portugal 2.00%
ÖBB Holding AG Austria Austria 2.00%
OSE CroatiHellenic Railways Greece Grece 2.00%
SJ Näringsdepartementet, Sweden Sweden Sweden 2.00%
ŽS Akcionarsko društvo Železnice Srbije Serbia Serbia 1.08%
ČD České dráhy, a.s. Czech Republic Czech Republic[8] 1.00%
HŽ Putnički prijevoz d.o.o. Croatia Croatia 0.82%
MÁV Hungarian State Railways Ltd. Hungary Hungary[9] 0.70%
ŽFBiH Javno preduzeće Željeznice Federacije Bosne i Hercegovine d.o.o. Bosnia and Herzegovina Bosnia and Herzegovina 0.51%
ŽSSK Železničná spoločnosť’ Slovensko, a.s. Slovakia Slovakia[10] 0.50%
SŽ Slovenske železnice d.o.o. Slovenia Slovenia[11] 0.42%
BDŽ Holding Balgarski Darzhavni Zheleznitsi EAD Bulgaria Bulgaria[12] 0.20%
ŽRSM Javno pretprijatie Makedonski Železnici-Infrastruktura North Macedonia North Macedonia[13] 0.09%
ŽPCG Željeznički Prevoz Crne Gore AD Montenegro Montenegro[14] 0.06%
TCDD Taşımacılık A.Ş. Turkey Turkey 0.04%
MŽ Železnici na Republika Severna Makedonija Transport AD - Skopje North Macedonia North Macedonia 0.02%
DSB Danish State Railways Denmark Denmark 0.02%
Vy Group Norway Norway 0.02%

Business Models[edit]

Through a membership model, EUROFIMA finances railway equipment through borrowings. The level of support is dependent on the equity provided by the shareholders. It can finance up to 100% of a project via short- or long-term loans[1][6].

EUROFIMA’s participating shareholders are primarily state railways of the Contracting States[6].

In 2018, EUROFIMA's statutes were amended to clarify conditions for public transport authorities and private transport operators to become shareholders or access loans, with an emphasis on public service contracts. These changes allow local or regional government guarantees in lieu of state guarantees.[1][15][16]

As a result of the liberalization of European rail markets under successive legislative packages, the rail market structure is changing. This in turn is giving rise to more complex operating and contracting models, with subnational entities emerging as major rolling stock owners in United Kingdom, Germany, France and potentially soon in many other countries[5][6].

Ratings[edit]

EUROFIMA’s credit ratings[17]:

  • S&P Global Ratings (June 2024): AA (stable)[18][19]
  • Moody’s (November 2023): Aa2 (stable)[20]
  • Fitch (June 2023): AA (stable)[21][19]

EUROFIMA’s ESG ratings[22]:

  • Sustainalytics (May 2024): 5.0 (risque négligeable)[23]
  • MSCI ESG (March 2023): AAA (leader)[22]
  • ISS ESG (November 2021): B- (prime)[24]
  • INRATE (September 2022): B+[22]

Capital Markets Presence[edit]

EUROFIMA acquires the funds for its lending by borrowing on the international capital markets and raises its financing mainly through the issuance of debt securities falling under the category of SSA (Sub-Sovereign, Supranational, Agency) issuance. It has a EUR 20 billion EMTN program as well as a EUR 2.5 billion ECP program[25],[26]. Its funding strategy emphasizes liquidity, transparency, and diversification.

Aligned with the EU Taxonomy Regulation, EUROFIMA’s funding strategy includes regular issuance of benchmark transactions in Euro, diversified by currencies, maturities, and sustainable debt products.[19] Most bonds are issued under its Green Bond Framework, adhering to the International Capital Markets Association’s (ICMA) Green Bond Principles, with proceeds allocated to electric locomotives, electric multiple units, and zero CO2 emission coaches[27][28]. EUROFIMA publishes an annual Impact Report on its Green Bonds and has a Second-Party Opinion on its Framework [29],[30]

Projects[edit]

Publication Country Project
2024-06-13 Croatia EUR 31 million financed for 7 diesel multiple units[31][32]. The Croatian government originally gave preliminary consent to the state-owned railway company to borrow 24 million; 10m to finance renovation of locomotives and trains, 14m for the repair of facilities for rolling stock maintenance[33].
2024-05-31 Belgium EUR 60.9 million for the refinancing of 30 M6 double-deck coaches originally financed in 2007-2008[34]
2024-01-08 Austria An order for ŽOS Trnava for the supply of 88 four-axle hoppers has been placed
2022-09-12 Hungary Financing for 50 Vectron locomotives and 39 sets of fixed formation coaches for the national operator MÁV-Start.[35]
2021-07-23 Croatia EUROFIMA helped finance 12 out of 33 new trains for Croatia's HŽ Putnički Prijevoz, with a total project cost of HRK 1.3 billion (€173 million). The trains, produced by Končar – Electric Vehicles, aim to improve commuter and regional rail services in Croatia.[36][37]
2020-11-26 Sweden Swedbank invests SEK 500 million as an anchor investor in EUROFIMA's inaugural green bond in Sweden to modernize Europe's railways. The bond totals SEK 1.5 billion and matures over an 8-year period.[3]
2020-07-07 Spain EUR 303 million financed. EUROFIMA has entered into two financing agreements with Spanish operator Renfe Operadora, providing loans of EUR 200 million (maturing in 2034) and EUR 103 million (maturing in 2030). These funds will be used to modernize Spain's regional rail fleet, including financing Civia EMUs for the Madrid and Barcelona commuter rail networks.[38]

Notes and references[edit]

  1. ^ a b c "EUROFIMA". IRJ 202403 - International Railway Journal (ISSN 2161-7376). 64 (3): 38. March 2024.
  2. ^ a b "EUROFIMA European Company for the Financing of Railroad Rolling Stock | UIA Yearbook Profile | Union of International Associations". UIA Global Civil Society Database. Retrieved 2024-06-17.
  3. ^ a b "Swedbank Robur invests in new green bond from EUROFIMA". News Powered by Cision. 2020-11-26. Retrieved 2024-06-21.
  4. ^ "EUROFIMA chooses SimCorp Dimension". News Powered by Cision. 2012-07-25. Retrieved 2024-06-21.
  5. ^ a b "UK urged to join Eurofima to facilitate access to cheaper rolling stock finance". Rail Business UK. 2024-02-19. Retrieved 2024-06-21.
  6. ^ a b c d "EUROFIMA". RGI 202404 - Railway Gazette International (ISSN 0373-5346). 180 (4): 41 - 43. April 2024.
  7. ^ "Treaty Series 2492 - No. 5425. Multilateral" (PDF). UN Library (in English and French). pp. 25–37. doi:10.18356/ab0c05fe-en-fr. Retrieved 2024-06-21.
  8. ^ Nations, United (2004-12-31). "Treaty Series 2197 , pp 345-353" (PDF). www.un-ilibrary.org (in English and French). ISBN 9789210457064. Retrieved 2024-06-17.
  9. ^ "Treaty Series 1639 , pp 405-405". UN-library (PDF) (in English and French). 1999-12-31. ISBN 9789210595582. Retrieved 2024-06-17.{{cite web}}: CS1 maint: url-status (link)
  10. ^ Nations, United (2003-12-31). "Treaty Series 2131 , pp 52-53" (PDF). www.un-ilibrary.org (in English and French). ISBN 9789210456401. Retrieved 2024-06-17.
  11. ^ Affairs, United Nations Office of Legal (2000-12-31). "Treaty Series 1725 , pp 362-362" (PDF). www.un-ilibrary.org (in English and French). Retrieved 2024-06-17.
  12. ^ Nations, United (2001-11-22). "Treaty Series 2013 , pp 521-521" (PDF). www.un-ilibrary.org (in English and French). ISBN 9789210455435. Retrieved 2024-06-17.
  13. ^ Nations, United (2001-12-19). "Treaty Series 1951 , pp 430-430" (PDF). www.un-ilibrary.org (in English and French). ISBN 9789210454810. Retrieved 2024-06-17.
  14. ^ Affairs, United Nations Office of Legal (2012-01-20). "Treaty Series 2398 , pp 330-333" (PDF). www.un-ilibrary.org (in English and French). ISBN 9789210553384. Retrieved 2024-06-17.
  15. ^ Smith, Kevin (2024-03-14). "Eurofima refocuses in a liberalised market". International Railway Journal.
  16. ^ Kingsley, Nick (2024-04-22). "Interview: Eurofima adapts to a changing market". Railway Gazette International. Retrieved 2024-06-21.
  17. ^ "Credit Ratings - EUROFIMA - Rolling Stock Financing". www.eurofima.org. Retrieved 2024-06-12.
  18. ^ S&P Global (11 June 2024). "EUROFIMA Outlook Revised To Stable From Negative On Eased Pressure On Capital Adequacy; 'AA/A-1+' Ratings Affirmed".
  19. ^ a b c "Eurofima. Information about the issuer. (LEI 4S66HJ5RNB5ZWG9YW219, SWIFT EURACHBBXXX). News and credit ratings. Tables with accounting and financial reports". Cbonds. Retrieved 2024-06-17.
  20. ^ "Moody's affirms Aa2 ratings with stable outlook". Moody's. 2 November 2023.
  21. ^ Fitch (29 June 2023). "Fitch Affirms EUROFIMA at 'AA'; Outlook Stable".
  22. ^ a b c "ESG Ratings". EUROFIMA.
  23. ^ "Company ESG Risk Ratings". Sustainalytics. May 2023.
  24. ^ "EUROFIMA". FINSIGHT. Retrieved 14 June 2024.
  25. ^ "EUR 20,000,000,000 Programme for the Issuance of Debt Instruments" (pdf). 15 October 2018.
  26. ^ "EUR 2,500,000,000 EURO-COMMERCIAL PAPER PROGRAMME" (pdf). 15 December 2022.
  27. ^ Investegate. "EUROFIMA Annual Report 2023 | Company Announcement | Investegate". www.investegate.co.uk. Retrieved 2024-06-17.
  28. ^ "Green Bond Framework" (pdf).
  29. ^ "Allocation & Impact Reports".
  30. ^ Sustainalytics (21 April 2021). "Second-Party Opinion EUROFIMA Green Bond Framework" (pdf).
  31. ^ "Eurofima provides 31 mln euro financing to Croatia's HZPP". SeeNews. Retrieved 2024-06-21.
  32. ^ Burroughs, David (2023-03-09). "IRJ News in brief - Financial". International Railway Journal. Retrieved 2024-06-21.
  33. ^ "Croatian railway co HZPP to borrow 24 mln euro from EUROFIMA". SeeNews. 2024-06-13. Retrieved 2024-06-21.
  34. ^ "Railway supply industry news round-up". Railway Gazette International. 2024-05-31. Retrieved 2024-06-21.
  35. ^ "MÁV-Start to purchase 50 locomotives after funding approved". International Railway Journal. 2022-09-12. Retrieved 2024-06-21.
  36. ^ "New 160 km/h Končar electric train connecting Rijeka launched". Croatia Week. 2021-07-24. Retrieved 2024-06-21.
  37. ^ "Koncar Elektroindustrija d d : New electric train for urban-suburban traffic commissioned - MarketScreener". uk.marketscreener.com. 2021-07-23. Archived from the original on 2021-07-23. Retrieved 2024-06-21.
  38. ^ Sapién, Josephine Cordero (2020-07-07). "EUROFIMA Provides Rolling Stock Funding to Renfe". Railway-News. Retrieved 2024-06-21.

Category:Rail transport in Europe Category:Companies established in 1956 Category:Railway companies

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