This article first appeared in the Railway-News magazine Issue 3 2021.
By Dr Carsten Wiebers, Global Head of Aviation, Mobility & Transport – KfW IPEX-Bank
KfW IPEX-Bank has been steadily expanding its financing in the rail sector over several years. There are many reasons for this. However, a major driver is the bank’s desire to make a significant contribution to the mobility transition and climate change mitigation. Around 20% of global CO2 emissions originate from the transport sector. A significant proportion of these emissions is accounted for by individual passenger transport and freight transport by road. Helping to shift these shipments to rail is therefore a key objective for KfW IPEX-Bank. Furthermore, the current crisis has shown the stability of freight transport by rail, which accordingly poses a comparatively low risk for the bank.
Banks’ increasing interest in the rail sector also coincides with higher demand for financing. Railway companies are continuing to replace rail vehicles they own with leased locomotives and rail cars from leasing companies. The leasing rate in the European rail sector is still comparatively low – at 30% of the total fleet, compared to a leasing rate of 50% for aircraft or container ships. Due to the high efficiency gains through leasing, we predict that this trend will also continue in the rail sector…
Railway-News magazine Issue 2, April 2023: KfW IPEX-Bank - The Heidekrautbahn Railway Network.
Railway-News magazine Issue 1, February 2023: KFW IPEX-Bank - Green Loans in the Rail Sector.
Railway-News magazine Issue 3, September 2022: KfW IPEX-Bank – The Asia Pacific Rail Market: Current Dynamics and Investment Trends.
Railway-News magazine Issue 5, November 2021: KfW IPEX-Bank - The European Rail Freight Sector – An Outlook
KfW IPEX-Bank has contributed EUR 200 million to the Dutch State Railway company NS’ investment programme for the region.
KfW IPEX-Bank recently aided the financing of Amber Infrastructure Group and DIF Capital Partners' acquisition of Rail First Asset Management.
Belgin Rudack has become one of five members of KfW IPEX-Bank’s Management Board, responsible for export and project finance within KfW Group.
KfW IPEX-Bank is providing 100 million Euros to Stadtwerke Frankfurt in order to finance new trams for the city of Frankfurt, Germany.
KfW IPEX-Bank is providing financing of EUR 70 million for the construction of a maintenance facility for the Hessian State Railway (HLB).
KfW IPEX-Bank and DAL have implemented an investment by NEB in seven hydrogen trains to run a local public rail service for Heidekrautbahn.
KfW IPEX-Bank is financing 40 new light rail vehicles to replace the oldest ones in the Stuttgarter Straßenbahnen AG (SSB) fleet.
KfW IPEX-Bank and Siemens Financial Services support transport transformation in Germany with another eight “green” locomotives for RIVE.
KfW IPEX-Bank, European Investment Bank (EIB) and NORD/LB are jointly financing the expansion of public transport in the Chemnitz region.
KfW IPEX-Bank is financing MFD Rail's investments in new freight cars. The funds will be used to finance up to 6,500 new intermodal railcars.
KfW is providing an estimated 440 million EUR to assist the Indian city of Surat with its energy-efficient metro system development.
KfW is supporting companies to invest in sustainable mobility with a broad range of promotional programmes.
EIB, KfW IPEX-Bank and NordLB finance new battery-powered regional trains to replace diesel in the surrounding area of Berlin.
KfW IPEX-Bank co-arranges financing of 50 new SmartHybrid and 53 existing modern shunting locomotives to be acquired by Nexrail.
Bayern LB, Helaba and KfW IPEX-Bank are co-financing the acquisition of 32 modern Coradia Continental electric multiple units for HLB.
KfW IPEX-Bank join the financing of Aves One AG, arranging a €75 million warehouse facility to expand their rail freight wagon portfolio.
KfW IPEX-Bank, ABN AMRO Bank, Crédit Agricole Corporate & Investment Bank and ING Bank are supporting Railpool's investments.
KfW IPEX-Bank supports the freight transport sector once again, financing new company Wascosa UK Ltd. to purchase freight wagons.
KfW IPEX-Bank is providing EUR 80 million towards the financing for new electric multiple units acquired by the passenger rail company ÖBB.
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