KfW IPEX-Bank has arranged financing for up to 30 new hybrid Siemens Vectron Dual Mode (VDM) locomotives managed by Northrail GmbH (Northrail) for its long-standing customer RIVE Private Investment. The lending volume of up to EUR 92.5 million will be provided jointly with Siemens Financial Services through Siemens Bank.
The first ten locomotives financed under this framework purchase agreement are already in use by various railway operators or will soon be delivered to them. As the market response to the locomotives remains very positive, an additional eight VDMs have now been ordered from the manufacturer. They will be delivered in stages from 2023. More requests for disbursement to secure further deliveries in 2024 are already being coordinated.
“We are pleased to be able to support our long-standing customer RIVE Private Investment with this transaction. At the same time, with these state-of-the-art locomotives we are making a positive contribution to the transition of rail traffic in Germany.”
The financed locomotives can run on electrified routes without emitting any direct emissions and are able to bridge non-electrified route sections using a diesel generator. The result is significantly lower CO2 emissions, as non-electrified sections had previously made it necessary to use diesel vehicles on the entire route.
“The transaction further strengthens RIVE Private Investment’s strategic position in the railway sector, aiming to support the energy and environmental transition policy in Europe. We are really proud to support Siemens as manufacturer while investing alongside Paribus/Northrail in innovative products that will transform the sector and fight climate change.”
“The rail sector plays a particular role for the establishment of an environmentally friendly mobility and transport offer. The development of innovative propulsion concepts and the procurement of accordingly equipped vehicle fleets is therefore also a very interesting business segment for banks and investors, which Paribus Rail Investment Management is opening up for its long-term partners RIVE Private Investment and KfW IPEX-Bank.”
Michael from Paribus Rail Investment Management GmbH is the initiator and overall project manager for the underlying locomotive procurement transaction.
The asset manager for the locomotives is Northrail GmbH, which is part of the Hamburg Paribus Group.
This article was originally published by KfW IPEX-Bank.
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