LGIM Real Assets have announced that it has completed two rolling stock deals, providing more than £350 million of investment to further improving UK train services.
Having now completed four rolling stock deals, committing a total of more than £550 million of investment to date to the sector, these latest transactions form part of Legal & General’s continued commitment to increasing its exposure to transport infrastructure.
Legal & General is helping to finance a fleet of 665 Bombardier Aventra trains that will be leased to Abellio East Anglia franchise from 2019.
The £183 million long term debt investment by LGIM Real Assets, on behalf of clients including Legal & General Retirement (LGR) is part of a total £835 million commitment made from a group of lenders to finance this fleet for Angel Trains Group, outside of the credit-rated group.
This new fleet of Bombardier Aventra vehicles will help to increase train frequency and reduce passenger’s journey times.
It will also provide a more energy efficient and modern fleet of trains for its customers.
Legal & General has also provided finance to supply in excess of 400 vehicles to be manufactured by Bombardier and CAF for use on the United Kingdom’s West Midlands franchise.
Increasing the fleet size by approximately 25%, this investment will help increase capacity, delivering on a key requirement set out by the Department for Transport as part of the franchise renewal.
Tom Sumpster, Head of Infrastructure Finance at LGIM Real Assets, said: “Improving our UK train services will in return act as a stimulus for economic growth.
“These two deals further expand LGIM’s clients’ exposure to essential infrastructure projects in the UK, offering them long-term, stable cash flows and in both cases, alongside experienced infrastructure asset owners.
“Our ability to deploy capital into strategic assets is testament to our holistic real assets strategy and the deep cross sector expertise that we have now embedded into our business.”