Public transport network gets a lift

Public transport network gets a lift

BayernLB provides loan to upgrade public transport system in North Rhine-Westphalia.

The Verkehrsverbund Rhein Ruhr (Rhine-Ruhr transit authority), or VRR for short, provides high-quality public transport to approximately 8 million people in the greater Ruhr and Lower Rhine area on its 11,800 kilometer rail network. VRR has trusted BayernLB to finance the purchase of 31 brand-new light-rail trainsets to operate on a light-railway network currently being constructed.

VRR and BayernLB financed two of the six tranches with a loan. The trains will be operated by Abellio Rail NRW since December 2019.

Excerpt from VRR’s press release:
“The special purpose association VRREigenbetrieb Fahrzeuge und Infrastruktur was able to secure low-cost financing to purchase the light-rail train fleet through two loan tenders. Bayerische Landesbank, KfW IPEX-Bank and the European Investment Bank were awarded the contract for the 25-year financing of the new Stadler trains. Bayerische Landesbank will finance the used train wagons for 15 years. As these are annuity loans, the annual instalments remain constant for the entire term of the loan and thus the costs can be calculated over the whole service life of the equipment.”

© BayernLB