KfW IPEX-Bank Finances a Maintenance Facility for the Hessian State Railway
- Financing of EUR 70 million for the site in Butzbach, Hesse
- The new facility serves to reduce costs and increase quality
KfW IPEX-Bank is providing financing of EUR 70 million for the construction of a maintenance facility for the Hessische Landesbahn (HLB). The financing is being provided in the form of a fixed-income registered bond. The new facility is intended to increase the scope of internal services, even in the case of major maintenance measures, which will enable HLB to reduce its dependence on external service providers. Due to its central location in the HLB network, the Butzbach site is an ideal location.
The borrower and owner of the facility is Hessische Landesbahn GmbH, the controlling company of the HLB Group. It leases the workshop to a service company specifically established for this purpose which provides maintenance services for HLB as well as potentially for other railway operators.
The plan is to construct a hall with eight 55-metre-long tracks spread over four bays with service buildings and warehouses. The building will be around 13 metres high. In addition, financing is also being provided for the purchase of the 72,200 square metres of land, the workshop equipment and the track systems for connection to the existing rail network.
With this financing that benefits regional public transport, KfW IPEX-Bank is supporting climate-friendly mobility and contributing to the mobility transition in Germany.
This article was originally published by KfW IPEX-Bank.
