Deutsche Bank : supports Rock Rail private debt financing for East Anglia rolling stock franchise

Largest privately procured order of trains in the UK / Continued appetite of institutional investors for long dated debt

Deutsche Bank's Global Transaction Banking division has been mandated by Rock Rail to support the funding of new rolling stock for the East Anglia franchise as intercreditor agent, noteholder agent, security agent and registrar. The franchise was awarded to incumbent operator Abellio East Anglia, completing the largest privately procured order for trains in the UK. Rock Rail has been founded to bid for major rail projects within the United Kingdom.

The order comprises twenty 12-car units to be used for London to Norwich services and the London to Stansted airport route. These intercity and commuter trains will have 79% more seats than those operating on the service now. Journey times from London Liverpool Street to Norwich are expected to reduce to 90 minutes from 110 minutes. Additionally, 24 four-car and 14 three-car vehicles will operate on electricity and diesel to provide regional services but with reduced environmental impact.

Rock Rail provided 6% of the £100m of equity, with the remaining 94% coming from a group of institutional investors including GLIL, a joint venture between Greater Manchester Pension Fund and the London Pensions Fund Authority, as well as SL Capital. The financing contract with the Department of Transport runs for 35 years.

The total £600m debt financing was privately placed with debt investors Aviva, providing the largest commitment, Legal and General, Sun Life, Babson Capital Management, Standard Life and the European Investment Bank (EIB) funding £60m under a slightly longer 28 year tenor.

This transaction follows the successful closing of the Moorgate rolling stock order, the first deal with Rock Rail and SL Capital in a joint venture, and to which Deutsche Bank was appointed as intercreditor agent, security agent and registrar.

Rafe Morton, Head of Corporate Trust EMEA, Global Transaction Banking, Deutsche Bank, said: "Following numerous privately placed debt transactions in the wider infrastructure and energy space recently, the move towards similar financings for the UK rail franchises reconfirms the growing appetite of institutional investors for long dated debt to match their long-term liabilities. Deutsche Bank's appointment on both East Anglia and Moorgate franchises demonstrates our focus and commitment to supporting the financing of UK infrastructure."

Deutsche Bank's Global Transaction Banking continues to strengthen its position as an independent agent in the infrastructure debt space, leveraging its deep experience and service flexibility to meet the needs of the finance parties across asset classes.

Deutsche Bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses, and private individuals. Deutsche Bank is Germany's leading bank, with a strong position in Europe and a significant presence in the Americas and Asia Pacific.