RZD to Announce a 752 M USD Locomotive Leasing Tender in 2017

OAO RZD is to hold a tender for locomotive leasing in 2017, the Kommersant reports. In case leasing is more attractive than credits and if the company can save cash flow, OAO RZD is to go ahead with locomotive leasing.

The amount of the tender is to be 47 B RUB (752.6 M USD). “Some locomotives are to be bought via leasing, so the 389 B RUB (6.2 B USD) amount [RZD 2017 direct costs - RRC comment] is smaller than we used to see”, OAO RZD Senior Vice President Vadim Mikhailov said. “However, if we add the locomotive leasing amount of 47 B RUB, the costs will be similar to the previous period”.

There are many potential bidders in the tender and OAO RZD would likes to take a look at what interest rates will be. “We get bids and look at the interest rates”, Mr. Mikhailov commented. “If it is 8% as Moscow Metro has - it is great. If it is 16% - no way. Furthermore, payment structure, grace periods and other specifics have to be considered”.

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