Draft:EUROFIMA: Difference between revisions - Wikipedia

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}}'''EUROFIMA, the European Company for the Financing of Railroad Rolling Stock''', is a supranational organization based in [[Basel]], [[Switzerland]]. Established in 1956, it 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 ([[Public service obligation|PSO]]) contracts.<ref name=":1" />

~~== Organization ==~~

EUROFIMA was established on November 20, 1956, by an international treaty between sovereign States (“Contracting States”). Initially founded for a period of 50 years, its mandate was extended until 2056 following a decision by the General Assembly in 1984.<ref name=":0">{{Cite web |title=EUROFIMA European Company for the Financing of Railroad Rolling Stock {{!}} UIA Yearbook Profile {{!}} Union of International Associations |url=https://uia.org/s/or/en/1100000235 |url-access=limited |access-date=2024-06-17 |website=UIA Global Civil Society Database}}</ref>

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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.<ref name=":1">{{Cite web |last=Smith |first=Kevin |date=2024-03-14 |title=Eurofima refocuses in a liberalised market |url=https://www.railjournal.com/in_depth/eurofima-refocuses-in-a-liberalised-market/ |url-access=subscription |website=International Railway Journal}}</ref>

== Impact of Market Liberalization ==

The [[Fourth Railway Package|liberalization of European rail markets]] under successive legislative packages has led to a changing rail market structure. 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 in other countries. 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.<ref name=":6" /><ref>{{Cite web |last=Kingsley |first=Nick |date=2024-04-22 |title=Interview: Eurofima adapts to a changing market |url=https://www.railwaygazette.com/in-depth/interview-eurofima-adapts-to-a-changing-market/66347.article |url-access=subscription |access-date=2024-06-21 |website=Railway Gazette International |language=en}}</ref>▼

As a result of the [[Fourth Railway Package|liberalization of European rail markets]] under successive legislative packages, the rail market structure is changing. This change is giving rise to more complex operating and contracting models, with subnational entities emerging as major rolling stock owners in countries such as the United Kingdom, Germany, and France, with potential expansion to other countries.<ref name=":6" />

▲The [[Fourth Railway Package|liberalization of European rail markets]] under successive legislative packages has led to a changing rail market structure. 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 in other countries. 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.~~<ref name=":6" />~~<ref>{{Cite web |last=Kingsley |first=Nick |date=2024-04-22 |title=Interview: Eurofima adapts to a changing market |url=https://www.railwaygazette.com/in-depth/interview-eurofima-adapts-to-a-changing-market/66347.article |url-access=subscription |access-date=2024-06-21 |website=Railway Gazette International |language=en}}</ref>

[[File:Infographic-operations-EUROFIMA.png|center|500x500px|frameless]]

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* [[Institutional Shareholder Services|ISS]] ESG (November 2021): B- (prime)<ref>{{Cite web |last= |title=EUROFIMA |url=https://finsight.com/sponsor-12222-eurofima?products=ABS,HYC,IGC&regions=APAC,EMEA,LATM,USOA |url-access=subscription |access-date=14 June 2024 |website=FINSIGHT |language=}}</ref>

* INRATE (September 2022): B+<ref name=":4" />

~~== Capital Markets Presence ==~~

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 [https://bsic.it/a-short-dive-into-ssas-a-european-perspective/ SSA] (Sub-Sovereign, Supranational, Agency) issuance. It has a EUR 20 billion [https://corporatefinanceinstitute.com/resources/fixed-income/euro-medium-term-notes-emtns/ EMTN] program as well as a EUR 2.5 billion [https://www.investopedia.com/terms/e/eurocommercialpaper.asp ECP] program. Its funding strategy emphasizes liquidity, transparency, and diversification.<ref>{{Cite web |date=15 October 2018 |title=EUR 20,000,000,000 Programme for the Issuance of Debt Instruments |url=https://www.eurofima.org/sites/default/assets/File/investor-relations/funding/eMTNInfomemo.pdf |url-access= |language= }}</ref><ref>{{Cite web |date=15 December 2022 |title=EUR 2,500,000,000 EURO-COMMERCIAL PAPER PROGRAMME |url=https://www.eurofima.org/sites/default/assets/File/investor-relations/funding/Eurofima%20ECP%202022%20Update%20-%20Information%20Memorandum(10248055772_1).pdf |url-access= |language= }}</ref>

Aligned with the [[EU taxonomy for sustainable activities|EU Taxonomy Regulation]], EUROFIMA’s funding strategy includes regular issuance of benchmark transactions in Euro, diversified by currencies, maturities, and sustainable debt products.<ref name=":5" /> Most bonds are issued under its Green Bond Framework, adhering to the International Capital Markets Association’s ([[International Capital Market Association|ICMA]]) Green Bond Principles, with proceeds allocated to electric locomotives, electric multiple units, and zero CO<sub>2</sub> emission coaches.<ref>{{Cite web |last=Investegate |title=EUROFIMA Annual Report 2023 {{!}} Company Announcement {{!}} Investegate |url=http://www.investegate.co.uk/announcement/rns/eurofima--76gv/eurofima-annual-report-2023/8083957 |access-date=2024-06-17 |website=www.investegate.co.uk |language=en}}</ref><ref>{{Cite web |title=Green Bond Framework |url=https://www.eurofima.org/sites/default/assets/File/EUROFIMA-Green-Bond-Framework.pdf |url-access= |language= }}</ref> EUROFIMA publishes an annual Impact Report on its Green Bonds and has a Second-Party Opinion on its Framework.<ref>{{Cite web |title=Allocation & Impact Reports |url=https://www.eurofima.org/investor-relations/reporting/allocation-impact-reports/#text |url-access= |language=}}</ref><ref>{{Cite web |last=Sustainalytics |date=21 April 2021 |title=Second-Party Opinion EUROFIMA Green Bond Framework |url=https://www.eurofima.org/sites/default/assets/File/Sustainability/EUROFIMA%20Green%20Bond%20Framework%20Second-Party%20Opinion_April%2021%2C%202021.pdf |url-access= |language= }}</ref>

== Recent Activities ==