KfW IPEX-Bank financing investments in new freight cars for MFD Rail

• MFD Rail is a new supplier of freight cars for combined freight transport
• Funds advised by Oaktree Capital Management, L.P. (“Oaktree”) are investing in MFD Rail together with the management team

KfW IPEX-Bank is actively involved in the area of intermodal freight transport and is financing the development of a freight car portfolio for the recently formed company MFD Rail, a new European platform for leasing freight cars for combined freight transport. The financing comprises a facility totalling EUR 105 million plus an additional accordion facility of up to EUR 100 million.

Intermodal freight transport is a dynamically growing segment of rail freight transport in Europe. By linking different means of transport with rail, the flow of goods can be managed cost-effectively and, above all, with minimum environmental impact. Intermodal freight transport has proven to be a viable alternative to road freight transport over long distances, and market shares are rising steadily. MFD Rail supports the European Rail Freight Vision 2030 of the Rail Freight Forward Initiative, which sets a target of increasing rail transport in European freight transport to 30 per cent by 2030 (from its current level of around 18 per cent). By opting for rail transport along the main route, CO2 emissions can be significantly reduced: rail freight transport generates six times less carbon dioxide per transported tonne and kilometre than trucks.

Oaktree, together with the management team, is investing in the newly formed Swiss company with the aim of turning MFD Rail into one of the leading intermodal rail car leasing companies in Europe over the next few years.

“We have supported the founders of MFD Rail from the outset and are very pleased to be able to play a leading role in this financing through our early support,” explains Andreas Ufer, member of the Management Board of KfW IPEX-Bank. “Together with our partners, we are promoting freight transport’s shift to rail – and are thus providing considerable support for climate-friendly transport infrastructure.”

“MFD Rail is very proud of the financing partnership we have developed with KfW IPEX-Bank and Oaktree, which is one of the most prestigious partners in the area of lending and private equity. Both companies also have in-depth knowledge of the railway industry,” adds Markus Basler, CFO of the MFD Rail Group. “As a start-up company, we are therefore extremely well capitalised, underscoring not only our ambitious growth plans, but also making them possible in the first place.”

KfW IPEX-Bank is the sole arranger, facility agent, security agent and hedging bank for the financing.