Aviva Investors, the global asset management business of Aviva plc , today announced it will provide over £200 million of debt-financing, on behalf of Aviva UK Life and other third-party clients, towards a fleet of new rolling stock for the West Coast Partnership rail franchise, which will operate under the new ‘Avanti West Coast’ rail service, on one of the UK’s busiest rail lines.
The fleet of Hitachi trains, which comprises 135 vehicles and is based on bullet train technology, will be quieter and greener than the rolling stock they replace and are expected to reduce carbon dioxide emissions by 61 per cent across the franchise. The ten seven-carriage electric units and 13 five-carriage electric-diesel bi-mode trains are scheduled to enter service from 2022, and will connect North West England, North Wales and the Midlands with London.
The transaction represents Aviva Investors’ third rail industry deal in 2019. It follows the provision of senior debt financing towards a new fleet of trains for the rebranded East Midlands Railway franchise in August, and committing to the €1.45bn senior debt facility for Beacon Rail in July, which helped refinance existing facilities and provide expansion funding to the business.
Rock Rail and Aberdeen Standard Investments acted as equity partners on the transaction.
Source : Company