KfW IPEX-Bank provides loan to American subsidiary of VTG

KfW IPEX-Bank is extending a long-term loan of USD 172 million to support Hamburg-based public limited company VTG Aktiengesellschaft invest significantly in growth. The finance, structured as an earmarked commercial loan, will assist the wagon hire and rail logistics company in activities including the procurement of 1,000 innovative goods wagons – 300 tank wagons and 700 covered hopper wagons – for its US 100% subsidiary VTG Rail Inc. The new vehicles all have low rolling resistance and reduced rolling noise levels.

The complex financing package was arranged by KfW IPEX-Bank, ABN AMRO Capital USA LLC and DVB Bank, with KfW IPEX-Bank acting as facility agent.

VTG is Europe’s largest wagon hire and rail logistics company. VTG Aktiengesellschaft is a publicly listed company headquartered in Hamburg. With around 80,000 railway goods wagons, it currently has the largest private goods wagon fleet in Europe.

Structured financing for railway infrastructure is one of KfW IPEX-Bank’s core areas of expertise.