Ashurst advises on rolling stock financing for Lot 4 of the Elbe Spree network

Ashurst advised private bank Berenberg and several investors represented by Allianz Global Investors GmbH (AllianzGI) on the financing of new rolling stock for the operation of rail passenger services in Lot 4 of the Elbe Spree network by ODEG Ostdeutsche Eisenbahn GmbH (ODEG). The issuer of the registered bonds for the financing of the acquisition is a leasing company set up by DAL Deutsche Anlagen-Leasing GmbH & Co. KG.

The investors are providing the financing for the acquisition of 10 brand new diesel and electric railcars with a total purchase price including financing costs of approximately €70 million. The vehicles will be operated by way of a leasing structure with DAL Deutsche Anlagen-Leasing GmbH & Co. KG. 

ODEG had previously been awarded the contract for operating regional rail passenger transport in Lot 4 of the Elbe Spree network by the responsible authorities, the States of Brandenburg, Berlin, Mecklenburg-Western Pomerania and Saxony-Anhalt.

The Ashurst team was led by partner Dr Tobias Krug. He was supported by partner Derk Opitz, senior associate Alexandra Heitmann, associates Julia Schanz and Dr Jan Ulrich Heinemann (all Project Finance, Frankfurt) as well as paralegal Ariana Fazlic (Project Finance, Munich). Counsel Holger Mlynek (Transport, Frankfurt) advised on the transport agreement and the rolling stock related contracts. Advice on tax law was provided by partner Dr Anders Kraft (Frankfurt).

Ashurst's German project finance practice regularly advises on asset finance transactions in the context of regional rail passenger transport financing. Ashurst recently advised consortia around CACIB and AllianzGI on the financing of new rolling stock for the operation of regional rail passenger transport services in Lot 1 of the Elbe Spree network (construction phase financing and long-term financing by a consortium consisting of a bank, institutional investors and the EIB for the acquisition of 21 electric railcars manufactured by Siemens Mobility GmbH) as well as on the financing of rolling stock for the operation of rail passenger services in Lot 2 of the Augsburg networks (funding by a consortium comprising a bank and institutional investors for the acquisition of a total of 41 new diesel railcars manufactured by ALSTOM Transport Deutschland GmbH).