GERMANY: M&G plc’s infrastructure investment arm Infracapital has entered the German rolling stock market through a joint venture with Rock Rail.
The first deal covers the financing of 18 four-car Siemens Mobility Mireo EMUs ordered for use by DB Regio on Mitteldeutschen S-Bahn 2025plus services from December 2026.
Munich ERGO AssetManagement GmbH is acting as sole arranger of the senior debt financing on behalf of Munich Re and other institutional lenders.
Infracapital has experience of transport and rail assets in the UK. It is aiming to play an important role in the German rolling stock market, where it sees high underlying demand and a growing emphasis on decarbonisation, with private capital expected to play a key role in replacing ageing fleets.
‘Germany’s liberalised rolling stock market sits at an exciting crossroads as the country seeks to double passenger rail numbers by 2030’, said Infracapital Managing Director Priya Veerapen on December 21. ‘We see a strong pipeline in the years ahead as government agendas in the UK and Europe are increasingly focused on delivering improved and cleaner public transport systems for a growing passenger base. We look forward to working with Rock Rail and other stakeholders to drive further growth in the years ahead.’
Rock Rail’s CEO Mark Swindell said it had been working in Germany since 2018 and has built strong relationships with public authorities, operators and manufacturers.
Law firm Stevens & Bolton advised Rock Rail on the joint venture. Rock Rail was advised on project financing by Clifford Chance and on commercial by K&L Gates. Other legal advisers included Allen & Overy for Infracapital and CMS for MEAG.
