for rolling stock
EUROFIMA's has a non-profit mission to support the development of public passenger rail transportation in Europe and to support the railway bodies which are its shareholders in renewing and modernizing their equipment.
LEAN LOAN DOCUMENTATION
MEMBERSHIP COOPERATIVE MODEL
EUROFIMA finances railway equipment through borrowings or equity capital. EUROFIMA secures title to or obtains security interests deemed equivalent (in particular pledges) on or in respect of equipment.
EUROFIMA’s equity is primarily used for investments in liquid assets and, to a limited extent, for equipment financing contracts.
EUROFIMA’s core activity and public mission consist of supporting the development of public passenger rail transportation in Europe by providing its shareholders, 25 national railway operators, and other railway bodies with cost-effective financing to renew and modernize their railway equipment. The eligibility criteria and general procedures for granting this support are outlined in EUROFIMA’s constitutive documents (Basic Agreement, Convention, Statutes) as well as in its Internal Policy Guide.
The conservative lending policy paired with the various layers of support granted in the constitutive documents result in a high-quality and resilient loan portfolio, which has never suffered a loss in the entire history of EUROFIMA.
Requests for financing from railway operators are evaluated through a thorough approval process consisting of three phases:
INTERNAL DUE DILIGENCE
EUROFIMA’s internal teams appraise the economic, financial, legal and technical aspects of each railway project and evaluate any potential risk related to it. Particular emphasis is put on the technical and economic evaluation of the rolling stock which collateralizes the requested financing. If necessary, external consultants are involved to support the internal due diligence.
APPROVAL FROM GOVERNING BODIES
The General Assembly sets the amounts which can be borrowed and subsequently used for lending purposes. The Board of Directors approves the financing requests
Upon conclusion of the financing, EUROFIMA monitors the implementation of the railway project, the status of rolling stock collateral and any systemic risk that may deteriorate its position as lender.
ROLLING STOCK FINANCED
FINANCED IN CHF
BASEL III RATIO
DISTRIBUTION OF EQUIPMENT FINANCING CONTRACTS
(amounts in EUR ‘000) Principal at December 31, 2019
|Germany(1)||DB AG||200 000||2.1%|
|Italy||FS||1 236 647||12.8%|
|Belgium||SNCB||1 883 519||19.4%|
|Spain||RENFE||1 535 100||15.8%|
|Switzerland||SBB||2 453 742||25.3%|
|Austria||ÖBB||1 547 609||16.0%|
|Total principal||9 693 438||100.0%|
|Difference to book value||489 369|
|Total book value||10 182 807|
(1) Germany and France hold 22.6% of EUROFIMA's share capital each through their fully owned state railways DB AG and SNCF and are thus related parties together with their railways
(2) all of which assumed by Greece
As per its by-laws, EUROFIMA finances the acquisition and modernization of railway equipment. As of December 31, 2019, the outstanding financing relates to the following equipment which is also held as collateral.
EQUIPMENT AS AT DECEMBER 31, 2019
|Railway||Locomotives||Multiple-unit trains||Passenger cars||Freight cars||Infra-structure Equipment||Total|
|mainline||shunting||motor units||trailer cars||in fixed formation||not in fixed formation|
|FS||14||279||1||127||265||262||0||1 483||0||0||2 431|
|ÖBB||6||155||48||24||258||239||243||62||2 167||142||3 344|
|Total||80||703||80||265||2 485||2 482||243||1 949||2 167||169||10 623|
EUROFIMA either holds title to the equipment until the financing has been completely reimbursed or it holds a direct or indirect security interest deemed equivalent, particularly pledges. The equipment is recorded in the company’s register with its number and type. Each railway is responsible for maintaining the equipment. In case of damage or loss, the equipment must be replaced without delay and at the railway’s expense. If a railway does not fulfill its obligations, EUROFIMA has the right to repossess the equipment to cover its exposure. The railway continues to assume responsibility for all contracts into which it has entered with the company. EUROFIMA has never experienced a loss due to the failure of a railway to assume its contractual obligations.
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What is EUROFIMA?
EUROFIMA European Company for the Financing of Railroad Rolling Stock is a supranational organization located in Basel, Switzerland. It was established in 1956 based on an international treaty signed by 25 European sovereign States so far.
Who are EUROFIMA's Member States?
- Czech Republic
- Bosnia and Herzegovina
- FYR of Macedonia
Who are EUROFIMA's shareholders?
Deutsche Bahn AG
Ferrovie dello Stato Italiane S.p.A.
NV Nederlandse Spoorwegen
Swiss Federal Railways
Luxembourg National Railways
CP-Comboios de Portugal, E.P.E.
Akcionarsko društvo Železnice Srbije
České dráhy, a.s.
HŽ Putnički prijevoz d.o.o.
Hungarian State Railways Ltd.
Javno preduzeće Željeznice Federacije
Bosna i Hercegovina d.o.o.
Železničná spoločnost’ Slovensko, a.s.
Slovenske železnice d.o.o.
Holding BalgarskiDarzhavni Zheleznitsi EAD
Javno pretprijatie Makedonski Železnici-Infrastruktura
Željeznički Prevoz Crne Gore AD
TCDD Taşımacılık A.Ş.
Makedonski Železnici-Transport AD
Danish State Railways
Norwegian State Railways
Who does Eurofima finance?
Eurofima finances railroad rolling stock for public passenger transport services. For Eurofima rolling stock means wagons, locomotives and multiple units. Eurofima supports its shareholder railways as well as other railway bodies in renewing and modernizing their equipment.
Is EUROFIMA a bank?
Eurofima is not a bank. It is a supranational organization that fulfils a non-profit maximizing mission to support the development of rail transportation in Europe.
I would like to have more information about EUROFIMA, who can I contact?
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