Cyril Amarchand Mangaldas acted as the borrower’s legal counsel for Kinet Railway Solutions Limited “Kinet” (a joint venture of Rail Vikas Nigam Limited, JSC Metrowagonmash “MWM” and Locomotive Electronic Systems “LES” (MWM and LES being joint-stock companies incorporated under the laws of the Russian Federation)) in part financing of its capital expenditure by Sber Bank, Branch in India “Sber Bank” and Punjab National Bank “PNB”, to be incurred towards manufacturing cum maintenance of 120 (one hundred twenty) ‘Vande Bharat’ trains and to meet its other obligations under the manufacturing cum maintenance agreement executed by Kinet with Ministry of Railways, dated September 27, 2023. The aggregate amount of loan for which financing documents have been executed is INR 1530,00,00,000 (Indian Rupees Fifteen Hundred Thirty Crores only), with Sber Bank, exposure being INR 930,00,00,000 (Indian Rupees Nine Hundred Thirty Crores only) and PNB for INR 600,00,00,000 (Indian Rupees Six Hundred Crores only).

The said transaction of financing the manufacturing and supply of ‘Vande Bharat’ trains to Indian Railways is first of a kind transaction where the Indian Railways is procuring the trains on a public private partnership basis.

The Transaction Team comprised of Ajay Sawhney, Bhupendra Verma, Vaibhav Shrivastav and Nikhil Gupta.

 

Source: Cyril Amarchand Managaldas’ LinkedIn Page