Sinara - Transport Machines to form separate legal entity for high-speed train project

YEKATERINBURG. April 2 (Interfax) - JSC Sinara - Transport Machines (Sverdlovsk region) plans to create a separate legal entity for the production of trains for high-speed rail, Vladimir Potatuev, head of Sinara Group corporate finance said.

"A very important point is that, legally, this project will be implemented on the balance sheet of a separate legal entity. Accordingly, all the preferential debt that we plan to attract for the project will also be for this separate legal entity, without burdening the STM holding at all. And only when production and incoming cash flow indicators become available, EBITDA will adequately balance the level of debt, and then, the company will probably be included in the perimeter of the STM holding," he said on the My Investments Telegram channel on the eve of the new issue of STM bonds.

As reported, Sinara Group will implement a project for the production of high-speed trains in cooperation with Transmashholding JSC (TMH), which will supply individual components and systems.