Ashurst advises MEAG and SocGen on financing new passenger trains for Kinzigtal rail network

Ashurst advised MEAG MUNICH ERGO AssetManagement GmbH (MEAG) as arranger and Société Générale as agent on the financing of new passenger trains for the Kinzigtal rail network.

MEAG is the exclusive arranger of the entire senior debt financing for the procurement and long-term operation of a fleet of 29 new regional passenger trains for the Kinzigtal rail network in the Federal State of Hesse / Germany. The sponsor DIF Capital Partners will be investing via its DIF Infrastructure VI fund and will act as the lessor of the new fleet in cooperation with the rail asset manager Northrail. Investors from Munich Re Group, and other institutional investors, including the MEAG Infrastructure Debt Fund II, are participating in the financing arranged by MEAG. The transaction encompasses a sale and lease-back of 29 modern multiple train units based on the Coradia Stream High Capacity platform from Alstom. The trains will enter service at the end of 2025 and will initially be leased to DB Regio for 15 years. DB Regio will operate the new vehicles on the Kinzigtal rail network section between Frankfurt am Main, Hanau, Fulda, and Bebra.

The Ashurst team was led by senior associate Alexandra Heitmann and partner Derk Opitz (both Project Finance). They were assisted by counsel Holger Mlynek (Infrastructure), associate Patrick Rauch as well as senior transaction lawyer Ariana Fazlic (both Project Finance). Advice on tax law aspects was provided by senior associate Dr Susanne Knoch. Partner Dr Detmar Loff advised on regulatory law.

Ashurst's German project finance practice regularly advises on asset finance transactions in the context of regional rail passenger transport financings.