We finance investments made by German and European leasing companies and encourage competition on the tracks.
Leasing companies rent rail vehicles out to rail operators, allowing them to flexibly structure their costs and preventing a long wait for rail vehicles to be produced. Thanks to our many years of experience and presence in this market segment, we can offer our customers flexible and tailored financing structures.
Summary: KfW IPEX-Bank acted as arranger, sole underwriter and bookrunner for a non-recourse acquisition of 4,400 railcars.
KfW IPEX-Bank supported Aves One AG, a rapidly expanding investor in logistics assets, during a challenging acquisition process for a railcar fleet sold by NACCO/CIT Group. The sales and financing process involved coordination with various players, including anti-trust agencies, a sales agent, asset managers and various bidders and was executed under intense time pressure.
To fund the acquisition, KfW IPEX-Bank provided a EUR 265 Mio non-recourse financing, involving a 10 year amortizing Term Loan, a CAPEX Facility and a VAT Facility to Aves Rail Rent. The transaction was fully underwritten at closing and partially syndicated thereafter to a consortium of 4 banks. KfW IPEX-Bank acted as sole underwriter, bookrunner, facility and security agent.
"With this innovative structure we continue our successful co-operation with Aves Rail Rent and support their dynamic growth path," explains Dr. Carsten Wiebers, Global Head of Aviation, Mobility and Transport at KfW IPEX-Bank.
With the financing solution provided for acquisition of this fleet, Aves One was able to double the number of freight cars to more than 8,900*. The new fleet is managed by established Swiss freight car lessor Wascosa AG, which is one of the largest freight car lessors in Europe.
*By the beginning of 2021 the freight car fleet had grown to approx. 11,000.
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