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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.[1][2]

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[3][4].

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[5].

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.[6] The ESG Integration Framework is applied to all of EUROFIMA’s investments[7].

Organization

EUROFIMA was established on November 20, 1956, based on an international treaty (the “Convention”)[8] between sovereign States (“Contracting States”).[9] 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.[10] 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[11].

EUROFIMA’s shareholders consist of 26 organizations from 25 European countries[11]. 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 22.60%
SNCF   France 22.60%
FS Ferrovie dello Stato Italiane S.p.A.   Italy 13.50%
SNCB   Belgium 9.80%
NS Nederlandse Spoorwegen   Netherlands 5.80%
RENFE Operadora   Spain 5.22%
SBB CFF FFS Swiss Federal Railways   Switzerland 5.00%
CFL Luxembourg National Railways   Luxembourg 2.00%
CP Comboios de Portugal, E.P.E. P   Portugal 2.00%
ÖBB Holding AG   Austria 2.00%
OSE CroatiHellenic Railways   Grece 2.00%
SJ Näringsdepartementet, Sweden   Sweden 2.00%
ŽS Akcionarsko društvo Železnice Srbije   Serbia 1.08%
ČD České dráhy, a.s.   Czech Republic[12] 1.00%
HŽ Putnički prijevoz d.o.o.   Croatia 0.82%
MÁV Hungarian State Railways Ltd.   Hungary[13] 0.70%
ŽFBiH Javno preduzeće Željeznice Federacije Bosne i Hercegovine d.o.o.   Bosnia and Herzegovina 0.51%
ŽSSK Železničná spoločnosť’ Slovensko, a.s.   Slovakia[14] 0.50%
SŽ Slovenske železnice d.o.o.   Slovenia[15] 0.42%
BDŽ Holding Balgarski Darzhavni Zheleznitsi EAD   Bulgaria[16] 0.20%
ŽRSM Javno pretprijatie Makedonski Železnici-Infrastruktura   North Macedonia[17] 0.09%
ŽPCG Željeznički Prevoz Crne Gore AD   Montenegro[18] 0.06%
TCDD Taşımacılık A.Ş.   Turkey 0.04%
MŽ Železnici na Republika Severna Makedonija Transport AD - Skopje   North Macedonia 0.02%
DSB Danish State Railways   Denmark 0.02%
Vy Group   Norway 0.02%

Business Models

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[4],[11].

EUROFIMA’s participating shareholders are primarily state railways of the Contracting States[11]. Railway obligations to EUROFIMA benefit from a state guarantee[19]. As of year-end 2023, EUROFIMA had €9.6 billion in development-related loans outstanding, distributed among 13 Contracting States[20].

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[11][21].

Ratings

EUROFIMA’s credit ratings[22]:

  • S&P Global Ratings (June 2024): AA (stable)[23][24]
  • Moody’s (November 2023): Aa2 (stable)[25]
  • Fitch (June 2023): AA (stable)[26][24]

EUROFIMA’s ESG ratings[27]:

  • Sustainalytics (May 2024): 5.0 (risque négligeable)[28]
  • MSCI ESG (March 2023): AAA (leader)[27]
  • ISS ESG (November 2021): B- (prime)[29]
  • INRATE (September 2022): B+[27]

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 SSA (Sub-Sovereign, Supranational, Agency) issuance. It has a EUR 20 billion EMTN program as well as a EUR 2.5 billion ECP program[30],[31]. 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.[24] 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[32][33]. EUROFIMA publishes an annual Impact Report on its Green Bonds and has a Second-Party Opinion on its Framework [34],[35]

Projects

Publication Country Title
2024-06-13 Croatia Croatian railway co HZPP to borrow 24 mln euro from EUROFIMA
2024-02-19 United Kingdom UK urged to join Eurofima to facilitate access to cheaper rolling stock finance
2024-01-08 Austria An order for ŽOS Trnava for the supply of 88 four-axle hoppers has been placed
2021-07-23 Croatia Koncar Elektroindustrija d d : New electric train for urban-suburban traffic commissioned
2020-07-07 Spain Eurofima, the European Company for the Financing of Railroad Rolling Stock, has entered into two financing deals with Spanish operator Renfe Operadora.

Notes and references

  1. ^ "Eurofima Europaeische Gesellschaft fuer die Finanzierung von Eisenbahnmaterial". BLOOMBERG. Retrieved 17 June 2024.
  2. ^ "REPORT OF THE BOARD OF DIRECTORS TO THE GENERAL ASSEMBLY" in EUROFIMA Annual Report 2023, page 5 (https://www.annualreports.com/Company/eurofima)
  3. ^ "EUROFIMA". Railway-News. Retrieved 2024-06-17.
  4. ^ a b "EUROFIMA". IRJ 202403 - International Railway Journal (ISSN 2161-7376). 64 (3): 38. March 2024.
  5. ^ "EUROFIMA INVESTORS PRESENTATION page 14" (pdf). EUROFIMA. April 2024. Retrieved 2024-06-15.{{cite web}}: CS1 maint: url-status (link)
  6. ^ "Company Information". United Nations Global Impact. Retrieved 17 June 2024.
  7. ^ "EUROFIMA as a sustainable and responsible investor" in EUROFIMA Annual Report 2023, 27-28 (https://www.annualreports.com/Company/eurofima)
  8. ^ CONVENTION for the establishment of the Company (PDF). 2010.
  9. ^ "EUROFIMA joins the Rail Working Group – Rail Working Group". Retrieved 2024-06-17.
  10. ^ "EUROFIMA European Company for the Financing of Railroad Rolling Stock | UIA Yearbook Profile | Union of International Associations". uia.org. Retrieved 2024-06-17.
  11. ^ a b c d e "EUROFIMA". RGI 202404 - Railway Gazette International (ISSN 0373-5346). 180 (4): 41 - 43. April 2024.
  12. ^ 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.
  13. ^ "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)
  14. ^ 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.
  15. ^ 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.
  16. ^ 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.
  17. ^ 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.
  18. ^ 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.
  19. ^ "STATE GUARANTEE", in EUROFIMA Annual Report 2023, p6 (https://www.annualreports.com/Company/eurofima)
  20. ^ "LENDING ACTIVITY AND DISTRIBUTION OF EQUIPMENT IN 2023", in EUROFIMA Annual Report 2023, p24-25 (https://www.annualreports.com/Company/eurofima)
  21. ^ "UK urged to join Eurofima to facilitate access to cheaper rolling stock finance". Railway Gazette International. 2024-02-19. Retrieved 2024-06-17.
  22. ^ "Credit Ratings - EUROFIMA - Rolling Stock Financing". www.eurofima.org. Retrieved 2024-06-12.
  23. ^ S&P Global (11 June 2024). "EUROFIMA Outlook Revised To Stable From Negative On Eased Pressure On Capital Adequacy; 'AA/A-1+' Ratings Affirmed".
  24. ^ 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.
  25. ^ "Moody's affirms Aa2 ratings with stable outlook". Moody's. 2 November 2023.
  26. ^ Fitch (29 June 2023). "Fitch Affirms EUROFIMA at 'AA'; Outlook Stable".
  27. ^ a b c "ESG Ratings". EUROFIMA.
  28. ^ "Company ESG Risk Ratings". Sustainalytics. May 2023.
  29. ^ "EUROFIMA". FINSIGHT. Retrieved 14 June 2024.
  30. ^ "EUR 20,000,000,000 Programme for the Issuance of Debt Instruments" (pdf). 15 October 2018.
  31. ^ "EUR 2,500,000,000 EURO-COMMERCIAL PAPER PROGRAMME" (pdf). 15 December 2022.
  32. ^ Investegate. "EUROFIMA Annual Report 2023 | Company Announcement | Investegate". www.investegate.co.uk. Retrieved 2024-06-17.
  33. ^ "Green Bond Framework" (pdf).
  34. ^ "Allocation & Impact Reports".
  35. ^ Sustainalytics (21 April 2021). "Second-Party Opinion EUROFIMA Green Bond Framework" (pdf).

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