PRK Partners acted as legal counsel to ČD Cargo in connection with the successful acquisition of a EUR 130 mil. loan from the European Investment Bank

At the end of 2020, the joint-stock company, ČD Cargo, the largest Czech railway transport provider and a subsidiary of Czech Railways, the national passenger rail carrier fully owned by the Czech Republic, signed an agreement with the European Investment Bank (EIB) to secure funds through an investment loan. Under the loan agreement, ČD Cargo has obtained funds for the purchase of up to 50 new electric (interoperable) locomotives and 140 freight intermodal wagons, as well as for the retrofitting of around 310 older locomotives with the European Railway Traffic Management System (ERTMS). The new EIB loan will support CD Cargo in its ambitious intermodal transport development plan, which aims at responding to the growing market and bringing its fleet in compliance with applicable European interoperability requirements.

PRK Partners’ advice included negotiating documentation with the EIB, preparing legal opinions and other legal support related to the successful acquisition and disbursement of the investment loan. The PRK team was led by Václav Bílý, Partner, and Tomáš Bureš, Attorney at Law.