Ashurst advises the European Investment Bank and UniCredit Bank AG on a financing of more than two billion euros for the Munich suburban railway system
03 August 2023
03 August 2023
Ashurst has advised a consortium comprising the European Investment Bank (EIB) and UniCredit Bank AG (UniCredit) on the financing of 90 suburban trains for local public transport in Munich. In total, the consortium provided more than two billion euros for the financing.
Ashurst's German project finance practice regularly advises in the area of asset finance transactions in the context of SPNV financings. In contrast to usual SPNV financings, this is the first time that a financing of S-Bahn trains in such a volume has been concluded over a construction period of several years and a long-term financing of subsequently approx. 30 years. The financing is therefore characterised by a high degree of complexity, which is due to the long term, the financing volume and the structuring of the financing in the form of loans and receivables purchases.
DB Regio AG is the operator of the relevant local rail passenger transport network (SPNV) (award procedure 2017/S 115-231852) and has carried out an award procedure for the procurement of vehicles (award no. 18FEF31335) within the framework of the requirements of the public authority Bayerische Eisenbahngesellschaft ("BEG") and has commissioned Siemens Mobility GmbH with the development, manufacture, commissioning, approval and delivery of initially 90 brand-new single-deck electric railcars, the first of which are expected to enter service from the end of 2028.
Financing will be provided through a leasing structure involving special purpose vehicles of LHI Leasing GmbH and supported by a debt service guarantee from the Free State of Bavaria.
The Ashurst team advised under the guidance of partner Derk Opitz, supported by senior associate Alexandra Heitmann, associate Tobias Bürk and senior transaction lawyer Ariana Fazlic (all project finance). The legal due diligence and negotiation of the vehicle procurement contract for the financiers was led by Counsel Holger Mlynek (Transport). Partner Dr Anders Kraft provided advice on the tax aspects. Partner Dr Detmar Loff and Senior Associate Dr Tobias Bauerfeind prepared the regulatory aspects.