Draft:EUROFIMA - Wikipedia

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EUROFIMA

Company type	European company
Founded	1956
Key people	Christoph Pasternak (CEO) Haldun Kuru (CFO) Ronald Klein Wassink (Chairman)
Owner	DB, 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
Website	www.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^[1].

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^[2].

Since its inception, EUROFIMA has financed over €92 billion, aiding in the transportation of more than 32 billion passengers, the standardization of passenger rolling stock for better interoperability between networks, and contributing to a reduction of over 162 million tons of CO₂ emissions^[3].

EUROFIMA is committed to sustainability and social responsibility in the railway industry. It has integrated ESG (Environmental, Social, and Governance) considerations into its investment decisions, adhering to the UN-supported Principles for Responsible Investment (PRI) since 2020 and the United Nations Global Compact (UNGC) since 2021. The ESG Integration Framework is applied to all of EUROFIMA’s investments^[4].

EUROFIMA was established on November 20, 1956, based on an international treaty (the “Convention”)^[5] 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.

Despite its name, the non-profit has no affiliation to the European Union, unlike peer entities such as the European Investment Bank^[6].

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

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^[2],^[6].

EUROFIMA’s participating shareholders are primarily state railways of the Contracting States^[6]. Railway obligations to EUROFIMA benefit from a state guarantee^[7]. As of year-end 2023, EUROFIMA had €9.6 billion in development-related loans outstanding, distributed among 13 Contracting States^[8].

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.

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^[6].

EUROFIMA’s credit ratings^[9]:

• S&P Global Ratings (June 2024): AA (stable)^[10]
• Moody’s (November 2023): Aa2 (stable)^[11]
• Fitch (September 2022): AA (stable)^[12]

EUROFIMA’s ESG ratings^[13]:

• Sustainalytics (May 2024): 5.0 (risque négligeable)^[14]
• MSCI ESG (March 2023): AAA (leader)^[13]
• ISS ESG (November 2021): B- (prime)^[15]
• INRATE (September 2022): B+^[13]

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^[16],^[17]. 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. 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^[18]. EUROFIMA publishes an annual Impact Report on its Green Bonds and has a Second-Party Opinion on its Framework ^[19],^[20].