OREANDA-NEWS. On January 23, 2007 Russian Railways has received the first tranche of a loan under an agreement signed in September 2007 with the Deutsche Bank AG, which will provide loans totalling EUR292,1 million to refinance the development, manufacture and supply of eight high-speed trains made by Siemens AG, reported the press-centre of Russian Railways.

Deutsche Bank was the sole arranger and lender of the package, which consists of two loans. The first loan is for EUR249,8 million over 13,5 years and is insured by EULER HERMES Kreditversicherungs-AG (Hamburg) acting on behalf of the Federal Republic of Germany. The second loan is for EUR42,3 million over 7 years.

The loan as insured by EULER HERMES Kreditversicherungs-AG will be used to refinance 85% of the cost of supplies and services provided for in the contract with Siemens, as well as the refinancing of the HERMES insurance premium of up to 100%.

The second loan will be used to refinance the 15% advance on the contract with Siemens, as well as the refinancing of additional costs.