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…
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, 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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