Ashurst advises Allianz Global Investors GmbH and Société Générale on regional rail passenger transport financing SH-XMU II (operation of emission-free battery railcars in Schleswig-Holstein on rail networks Nord and Ost)

Ashurst advised Allianz Global Investors GmbH (AllianzGI) and Société Générale on the financing of electric multiple units for the operation on the networks Nord and Ost in Schleswig-Holstein (procurement "SH-XMU II – Financing of innovative multiple-unit trains for Schleswig-Holstein").

The investors represented by AllianzGI provide the financing for the acquisition of 55 brand new electric railcars. The railcars are purchased by Paribus-XMU-Fahrzeugvorhaltegesellschaft mbH (Paribus Fahrzeugvorhaltegesellschaft), a special purpose vehicle of the Paribus group (Paribus), from Stadler Pankow GmbH (Stadler). Paribus was awarded the contract on 7 April 2020 and will make the vehicles available to the contracting authority, the Federal State of Schleswig-Holstein, through Paribus Fahrzeugvorhaltegesellschaft under a rolling stock provision agreement for 30 years. The Federal State of Schleswig-Holstein supports the financing with a debt service guarantee.

For financing the multiple units during the construction and operation phases, Paribus Fahrzeugvorhaltegesellschaft will issue registered notes subscribed by investors of AllianzGI. In particular, the coverage of the construction phase by a registered note is exceptional in the market. In addition, Société Générale provides a VAT pre-financing facility.

The Ashurst team was led by partner Derk Opitz. He was assisted by partner Dr Tobias Krug, senior associate Alexandra Heitmann, associate Dr Jan Ulrich Heinemann (all Project Finance, Frankfurt) and transaction lawyer Ariana Fazlic (Project Finance, Munich). Partner Dr Maximilian Uibeleisen and counsel Holger Mlynek advised on the rolling stock provision agreement as well as on the rolling stock related contracts (Transport, Frankfurt). Advice on tax law was provided by partner Dr Anders Kraft (Tax, Frankfurt).

Ashurst's German project finance practice regularly advises on asset finance transactions in the context of regional rail passenger transport (SPNV) financings. Most recently, Ashurst advised private bank Berenberg and AllianzGI on the financing of new rolling stock for the operation in Lot 4 of the Elbe Spree network by ODEG Ostdeutsche Eisenbahn GmbH, consortia comprising CACIB and AllianzGI on the financing of new rolling stock for the operation of SPNV services in Lot 1 of the Elbe Spree network (construction phase financing and long-term financing for the acquisition of 21 electric railcars manufactured by Siemens Mobility GmbH by a consortium consisting of a bank, institutional investors and the EIB) as well as on the financing of rolling stock for Lot 2 of the Augsburg networks (financing for the acquisition of a total of 41 new diesel railcars manufactured by Alstom Transport Deutschland GmbH by a consortium comprising a bank and institutional investors). This is the first time Société Générale has been advised by Ashurst in the area of SPNV financings.