• Westbahn III

    A prerequisite for the procurement of 15 x Stadler KISS double-deck trainsets in 2019 for the private Austrian railway company WESTbahn was that the trains would be financed via a long-term financial lease with a term of up to 20 years.

    WESTbahn is an open access railway company becoming the first open-access operator to enter Austria’s domestic long-distance railway market. Since December 2011, WESTbahn is operating trains from Vienna via Salzburg to Munich, Innsbruck and Bregenz, making it one of the oldest private railway companies in European long-distance transport.

    On behalf of Stadler, AIL has structured and implemented a customized 20-year finance lease solution for WESTbahn on the basis of a special purpose leasing company (Leasing SPV), which acts as lessor to WESTbahn.

    The leasing SPV purchased the 15 double-deck EMU trainsets from Stadler and leased them to WESTbahn for 20 years in return for a monthly leasing rate. At the end of the lease, the trains become the property of WESTbahn after payment of the agreed residual value.

    The refinancing of the lease portfolio consisting of the 15 x Stadler KISS double-deck trainsets was carried out via a long-term credit financing from a consortium of Swiss banks.

    This long-term leasing solution has been tailored by AIL to meet WESTbahn’s financial needs and conditions, providing WESTbahn with long-term financial planning security.

    Key project data

    • Project type: Rolling stock
    • Financing: Financial lease
    • Project volume: > EUR 300 million
    • AIL client: Stadler Rail / Austrian Train Finance Ltd (Lease-SPV)
    • Financial closings: 2019 – 2020
    • Scope of project: 15 x Stadler double-deck EMU

    Financial lease solution for Stadler double-deck multiple-unit trains

    The trains with modern equipment standards run on various routes in Austria and Germany.

    AIL scope of work

    • Conception and structuring of long-term financial lease including implementation of special purpose vehicle (SPV) as lessor
    • Conception and structuring of the long-term refinancing of the leasing portfolio (trains)
    • Calculation of leasing rates and creation of long-term business case modeling (Excel model)
    • Preparation of project documentation (financing presentation, etc.)
    • Advice and support in negotiating the lease and financing documentation
    • Advice and support with the implementation of interest rate hedging
    • Supporting the banks in the due diligence process
    • Management and coordination of all activities of the financing process until closing
    • Support in the administration of the leasing SPV (incl. accounting, invoicing of leasing installments, preparation of financial statements, bank reporting, compliance and regulatory tasks)