KfW Ipex-Bank has signed an export credit facility worth SFr254mn (US$305mn) for Saudi Railway Company to support the purchase of 10 passenger trains.
The German lender acted as initial mandated lead arranger, bookrunner and original lender, it said in a statement.
Commerzbank and UBS Switzerland were arrangers and original lenders, with Swiss Export Risk Insurance (Serv) acting as the export credit agency, providing 95% coverage.
The financing, which was signed in Berlin this week, supports the export of 10 new passenger trains from European rail manufacturer Stadler Rail to Saudi Railway Company. The new trains will run on the East Network, which links Riyadh with the country’s Eastern Province.
Saudi Railway Company operates three intercity rail networks spanning more than 5,500km, providing passenger and freight services across several regions of the country.
KfW Ipex-Bank said the trains would help meet growing demand for rail travel and increase passenger capacity, supporting what it says is an expected shift in traffic from road to rail, with “associated safety and emissions benefits”.
“Modern rail projects like this are central to our infrastructure strategy,” said Aida Welker, member of the management board of KfW IPEX-Bank. “They illustrate how European technology and targeted export finance can work hand in hand to strengthen efficient public transport services.”
KfW IPEX-Bank is responsible for project and export finance within KfW Group. It supports German and European companies in key industrial sectors through medium and long-term export financing, infrastructure funding, raw material supply financing and climate mitigation projects.
The deal will back European specialised rail engineering and sustain jobs across Swiss, German and wider European supply chains, the lender added.
