• Closing of tailor-made security package for Stadler project in Kazakhstan

    Mid of 2023 AIL structured and completed a tailor-made security package in favor of Stadler relating to a large and long-term coaches procurement contract that Stadler signed at the end of 2022 with the state railway of Kazakhstan (KTZ) based on a successful tender. The security package comprises specific insurance cover from the Swiss Export Risk Insurance (SERV) covering any pre-shipment, payment and contract bond risks in connection with the project.

    The project with an order volume of > EUR 2bn consists of the manufacturing and supply of 537 sleeping coaches in different versions from 2025 to 2030 and the full-service maintenance of the coaches for 20 years. In addition, as part of the tender requirements, the project includes the acquisition of an existing local production facility in Kazakhstan by Stadler where certain manufacturing stages (in particular final assembly) need to be localized.

    New Sleeping Coaches for KTZ, Source: Stadler

    Diverse risks due to a complex supply contract

    Due to the complexity of the coaches’ procurement contract with respect to the relatively long delivery phase over several years until 2030, the long lead-time (including ramp-up of the local production capacity and establishment of the procurement process) until first coach deliveries, the contract currency denominated in local Kazakh Tenge (KZT), a complex price variation clause and the large bonding volume, Stadler asked AIL to structure and implement a tailor-made security package based on the support of the Swiss Export Risk Insurance (SERV) in terms of cover for pre-shipment, payment and guarantee risks. AIL supported and advised Stadler throughout the entire risk mitigation structuring process including SERV application and preparation of the supporting documentation (project presentation, financial planning).

    Christoph Zimmermann, Head of Group Treasury at Stadler: “We are very satisfied with the tailor-made security package provided by SERV for the benefit of Stadler. The solution allows us to mitigate the main political and commercial risks of the project over the entire delivery period until 2030, which ultimately helped Stadler to secure the deal.”