Swedbank and the Latvian railway company Latvijas Dzelzcels (LDz) have signed an agreement for two long-term loans for a total amount of EUR 32.26 million. The money will be spent for the modernization of locomotives. The loans are for 10 years and 15 years respectively.
LDz financed the modernization of the first locomotives from its own funds but decided to hold a public tender for a long-term loan to continue upgrading its locomotive fleet. Four bidders participated in the negotiated tender for the loan, and Swedbank was chosen as the winning bidder because the loan payments proposed were the lowest.
This is the largest project for locomotive fleet upgrading undertaken by the company so far. LDz Ritosa Sastava Serviss, a subsidiary of LDz, intends to modernize 14 diesel locomotives by February 2019 to renew its locomotive fleet and reduce costs for repair of locomotives.
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