- Lead arranger role in export credit totalling CHF 254 million for Saudi Railway Company
- Financing supports European railway industry exporting modern trains
KfW IPEX-Bank is acting as Initial Mandated Lead Arranger and Bookrunner for an Export Credit Facility for Saudi Railway Company with a total transaction volume of CHF 254 million. The bank leads a consortium with Commerzbank AG and UBS Switzerland AG as Arrangers and Swiss Export Risk Insurance SERV acting as the ECA.
With this transaction, KfW IPEX-Bank supports the European rail industry by financing European exports for modern passenger trains to Saudi Railway Company.
The financing covers 10 new passenger trains from Stadler Rail, a leading European rail manufacturer. This project supports European specialised rail engineering and helps sustain jobs along Swiss, German, and European supply chains.
Aida Welker, member of the Management Board at KfW IPEX-Bank, said:Modern rail projects like this are central to our infrastructure strategy. They illustrate how European technology and targeted export finance can work hand in hand to strengthen efficient public transport services.
The new trains will operate on the East Network, which connects the capital Riyadh with the Eastern Province. They will help meet the strong growth in demand for rail travel and increase passenger capacity. With an expected shift in traffic from road to rail, the project is designed to improve safety and reduce emissions compared with road-based transport.
Saudi Arabia Railways (SAR) operates three intercity rail networks with a combined length of more than 5,500 kilometres, providing passenger and freight services across several regions of Saudi Arabia.
This article was originally published by KfW IPEX-Bank.
