Ashurst advises on rolling stock financing for "Lot 1 of the Augsburg networks"

Ashurst has advised a consortium comprising Bayerische Landesbank, Landesbank Hessen-Thüringen Girozentrale and Norddeutsche Landesbank - Girozentrale on the financing of new rolling stock for the operation of rail passenger services in "Lot 1 of the Augsburg networks" ("ABN1") by Go-Ahead Verkehrsgesellschaft Deutschland GmbH ("GAVD").

In December 2018, GAVD was awarded the contract by Bayerische Eisenbahngesellschaft mbH and the State of Baden-Württemberg for the operation of the Ulm - Augsburg - Munich, Würzburg - Ansbach - Treuchtlingen - Donauwörth - Augsburg and Aalen - Nördlingen - Donauwörth routes covering services totalling approx. 7.4 million train kilometres per year.

The consortium of Landesbanks is providing a company of DAL Deutsche Anlagen Leasing, Mainz, with financing for the acquisition of a total of 56 new electric multiple-unit trains (EMUs) from Siemens Mobility GmbH. The brand new EMUs with a financing value of over 390 million euros will be used by a subsidiary of GAVD as a leasing construction for the operation of short-distance rail passenger transport in Lot 1 of the Augsburg networks. Bayerische Eisenbahngesellschaft mbH and the state of Baden-Württemberg support the financing of the electric multiple units with a debt service guarantee.

Ashurst's German project finance practice regularly advises on asset finance transactions in the context of short-distance rail passenger transport financing in Germany. Most recently, Ashurst advised institutional investors on the financing of diesel traction vehicles for the Saxony-Anhalt diesel network and the Ulm diesel network by means of registered notes. In addition, teams led by Derk Opitz have previously assisted banks in the financing of the acquisition of 30 EMUs for the sub-network South Hesse-Untermain of the Hessische Landesbahn and 28 diesel traction vehicles for the Augsburg I diesel network of Bayerische Regiobahn GmbH.

The Ashurst team was led by finance partner Derk Opitz. He was supported by counsel Nikolos Tsagareli and senior associate Alexandra Heitmann, associate Dr Jan Ulrich Heinemann and transaction lawyer Julia Probst (all Project Finance). Counsel Holger Mlynek and partner Dr Maximilian Uibeleisen advised on the operating and the rolling stock related contracts (both Transport). Partner Anne Grewlich and senior associate Gabrielle Metherall advised on English law aspects (both Finance, all Frankfurt).