PwC advises abrdn and Rock Rail on financing 72 new trains for the Main-Weser network
PwC has acted as lead financial advisor to abrdn and Rock Rail who have delivered their first joint European investment, following financial close of the financing of new electric trains for the Main-Weser Network in Germany. The fleet comprises of 17 new high-capacity Coradia Stream electric multiple units, totalling 72 vehicles.
abrdn and Rock Rail will procure the trains from Alstom and lease them to Deutsche Bahn’s regional rail subsidiary, DB Regio AG, on an initial 14-year lease. The Main-Weser fleet has strong ESG credentials, replacing the current loco-hauled fleet with energy efficient trains offering 15% higher peak-capacity, supporting the PTA’s wider integrated transport strategy and encouraging a modal shift from road to rail in support of the Net-Zero agenda.
This long-term financing of rolling stock does not benefit from a re-lease guarantee or comparable support mechanism from the PTA. The lender and lessors retain redeployment risk beyond the initial lease period.
Equity was funded by abrdn’s second Core Infrastructure Fund and Rock Rail. MEAG is acting as the exclusive arranger of the entire senior debt financing. The PwC services were provided by two expert leaders in both the UK & Germany.
“We chose PwC because we needed an adviser who understood our business, could bring us insights into the German market, and also provide transaction support both in the UK and in Germany across financing, structuring and tax. We have a deep relationship with PwC and they demonstrated they had the network that could help us be successful in a new market. Success in Germany represents three years of development work and PwC has been a key partner for us on that journey.”
“This was a groundbreaking transaction, and abrdn and Rock’s first deal together outside of the UK. abrdn and Rock have been very successful in the UK and we are really pleased to have helped them translate this into success in the German market for the first time. This transaction underlines the strong appetite of transit authorities to seek new innovative solutions as they replace aging assets and drive through their ESG agendas."
“We are delighted to have worked so closely with abrdn and Rock and our UK colleagues to achieve financial close on this first deal for our clients outside of the UK. This is a very innovative deal in the German passenger rolling stock market. We worked closely with abrdn and Rock to structure it in a way to achieve success. I think we will see many more deals like this in the future.”
Support was provided in the UK by James Gibbons, Oliver Preston, Mohammed Khan, Chris Barrow, Nitin Premchandani and George Eaton.
Support was provided in Germany by Maximilian Rohs, Martin Dörnte, Tim Scholz, Christian Hagenah, Brigitte Friedrich and Mathis Lepski.
Tax services were provided by Michael Staunton (UK) and Henrik Wrede (Germany).
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