KfW IPEX-Bank finances investments in local public transport (LPT) within Germany and Europe, thus helping to protect both the environment and the climate while also boosting mobility.
Financing case RNV: New trams for Rhein-Neckar-Verkehr GmbH
Under the project 'Rhein-Neckar-Tram 2020' Rhein-Neckar-Verkehr GmbH is purchasing 80 new rail vehicles. The loan provided by KfW IPEX-Bank amounts to approx. EUR 87.5 million.
- Total investment volume of more than EUR 250 million
- 80 new trams that can be used in double traction
- For local public transport in the cities of Mannheim, Ludwigshafen and Heidelberg
- The aim is to modernise and expand the vehicle fleet and to improve local public transport services.
- 100% of the long-term financing is guaranteed by the three owner municipalities in accordance with their voting shares.
- Czech manufacturer Škoda Transportation to supply the new trams (produced at a Finnish subsidiary of Škoda)
Contribution of KfW IPEX Bank:
- KfW IPEX-Bank leads the consortium with NORD/LB Norddeutsche Landesbank
- Lending volume of KfW IPEX-Bank: around EUR 87.5 million
- 32 years' term
- Advice on financing structure
- Particular challenge: Rhein-Neckar Verkehr GmbH (RNV) is a joint venture of the cities of Mannheim, Heidelberg (both located in Baden-Württemberg) and Ludwigshafen (Rhineland-Palatinate). Thus the legal structures needed to be coordinated not only with three municipalities but also with two federal states.
- The European Investment Bank (EIB) is also providing a long-term loan.