KfW IPEX-Bank arranges and syndicates promotional loan for VTG

• KfW IPEX-Bank acts as sole mandated lead arranger and bookrunner
• EUR 340 million for ordering new wagons
• First use of a promotional loan from KfW programme 269 (investment loan for sustainable mobility, individual variant) as syndicated financing for wagon rental and rail logistics companies
• Improves sustainable and climate-friendly freight transport in Germany

In its role as sole mandated lead arranger and bookrunner, KfW IPEX-Bank arranges and syndicates a promotional loan from KfW in the amount of EUR 340 million for VTG, one of Europe’s largest private wagon rental and rail logistics companies. This financing is provided by KfW IPEX-Bank and four other core banks of VTG, which participate as mandated lead arrangers. KfW IPEX-Bank also acts as facility agent for the international consortium.

The promotional loan is based on KfW programme 269 (investment loan for sustainable mobility, individual variant), has a term of seven years and will be part of the existing financing platform of VTG. This product is being used for the first time as syndicated financing for a German, internationally active company in the rail transport industry.

VTG is using the loan to purchase new freight wagons. The portfolio includes various types of wagons, such as tank wagons, open and closed freight wagons, and intermodal wagons.

"We are particularly pleased to once again be able to support our long-standing customer VTG with our arrangement expertise and to be able to use this KfW product for the first time as syndicated financing for an internationally active wagon rental and rail logistics company," said Aida Welker, Member of the Management Board of KfW IPEX-Bank. "The financing contributes to the shift of freight transport from road to rail and strengthens the decarbonisation of the transport sector in Germany and Europe."

Dr Mani Herold, CFO at VTG: “The syndicated promotional loan will be used to finance our investments in new, modern freight wagons. We are proud that VTG is the first transport company to successfully place such a large promotional loan from the KfW programme for investments in sustainable mobility on the market in order to create the conditions for more climate-friendly rail transport. We would like to thank KfW IPEX-Bank for its consistently reliable and excellent cooperation in implementing this important, innovative financing.”

About VTG
VTG GmbH, with its headquarters in Hamburg, Germany, is an internationally active asset and logistics company with a focus on rail. With around 84,800 rail freight wagons, VTG operates the largest private fleet in Europe, including mainly tank cars, intermodal wagons, standard freight wagons and sliding-wall wagons.