MEAG has successfully completed the long-term financing of a new fleet of battery-powered regional trains for the Northern Westphalia network on behalf of institutional investors.
The transaction will be used to procure 61 battery-powered multiple units (BEMU) of Siemens Mobility’s Mireo Plus B platform. The vehicles were ordered by a project company owned by John Laing and Rock Rail. MEAG, together with a consortium of international institutional investors, structured, arranged and provided the long-term senior debt financing of the project.
From December 2029, the trains are to be used on partially electrified and non-electrified regional routes in North Westphalia. They replace diesel-powered vehicles and enable locally emission-free rail operation. The battery-electric trains charge their batteries via overhead lines where they are available and run on battery power on non-electrified routes. They thus offer a flexible and future-proof solution for regional rail transport. Thanks to the combination of regenerative braking and intelligent control of starting and braking processes, the vehicles are also designed for particularly energy-efficient driving.
The project is one of the largest battery-powered train fleets in Germany and makes an important contribution to the decarbonisation of rail transport in North Rhine-Westphalia. The new fleet offers advantages in terms of CO₂ reduction in the transport sector, lower noise emissions, improved passenger comfort and accessibility as well as long-term operational safety for the public transport authority.
The financing has been structured as a long-term, fixed-income senior note and is tailored to the economic life of the assets as well as the lease profile of the project. The successful financial close underlines MEAG’s proven expertise in rolling stock financing to support sustainable mobility solutions in German regional rail passenger transport.
Thomas Bayerl, Global Head of Illiquid Assets, MEAG: “Battery-powered trains are a key technology for accelerating the decarbonization of regional rail networks, especially on routes without end-to-end electrification. We are pleased to support Rock Rail and John Laing as well as their partners in the realization of one of the largest BEMU fleets in Germany and to have reached financial close for this important project.”
Işıl Tanrıverdi Versmissen, Head of Infrastructure Debt Transactions, MEAG: This transaction shows that MEAG can structure robust, long-term financing for complex rolling stock projects in a tailor-made manner. We are pleased to combine ecological aspects with stable, predictable cash flows for our investors with this project. The transaction benefits from the long-standing and trusting cooperation with our project partners and reflects the joint commitment to an efficient and sustainable railway infrastructure.”
MEAG is Munich Re’s asset manager. With offices in Europe, Asia and North America, it also offers its comprehensive investment know-how to institutional investors and private clients outside the Group. MEAG currently manages assets of around EUR 368 billion, of which EUR 63 billion is for private and other institutional investors.
