EIB agrees £60m funding for new Abellio East Anglia operated trains
Posted: 5 October 2016 | | No comments yet
The European Investment Bank (EIB) has announced £60 million funding for the procurement of new trains for services in East Anglia, UK.
The European Investment Bank (EIB) has announced £60 million funding for the procurement of new trains for Abellio East Anglia operated services, UK.
The 28-year EIB loan will help improve passenger services on key London, intercity, airport and local services in East Anglia. The investment will ensure the purchase of 378 new train carriages, replacing existing electric and diesel trains. The EIB loan is guaranteed by the European Fund for Strategic Investments (EFSI) under the Investment Plan for Europe, and this is the first EFSI transport loan in the UK.
EIB loan allows purchase of 378 new train carriages
The investment enables the purchase of Stadler Intercity Electric Multiple Units and Regional Bi-mode Multiple Units by Rock Rail East Anglia PLC. The new rolling stock will be operated by Abellio East Anglia Limited under the new nine year East Anglia rail franchise which begins on Sunday 16th October 2016.
Funding of these new trains was led by Rock Rail and SL Capital with additional co-investment equity being provided by GLIL, the Greater Manchester Pension Fund and London Pensions Fund Authority infrastructure investment joint venture.
“Investment in new trains, upgrading rail infrastructure and building new lines has transformed UK local and national rail use in recent years and helped to double the number of rail passengers over the last 20 years. The European Investment Bank is pleased to support investment in new trains that will benefit both commuters to Europe’s biggest city and local travel on Abellio operated lines. This builds on our strong track record of supporting sustainable transport investment across the UK and around the world.” said Jonathan Taylor, European Investment Bank Vice President.
Mark Swindell, founder of Rock Rail added: “We are delighted to close our second rolling stock financing, especially in what have been volatile markets post Brexit. The highly competitive long term nature of funding provided by our Blue Chip institutional investors delivers best value for money to the East Anglia passengers and tax payer over the life of the trains.”
Dominic Helmsley, Head of SL Capital Infrastructure, a subsidiary of Standard Life Investments, said: “We are very pleased to be funding this important upgrade to rail services on East Anglian and with the continued success of our joint venture with Rock Rail. We are particularly excited as we see significant further potential to provide competitive funding for new rolling across the UK rail network.”