Legal & General Real Assets is to provide £200 million (€228 million) in long-term debt to finance the purchasing of new rolling stock for the Wales & Borders train franchise.
The finance will go towards the purchase of a new fleet of 60 trains for the Core Valley Lines (CVL) in and around Cardiff, comprising 36 light rail overhead electric and battery powered trains and 24 diesel, battery and overhead electric tri-mode trains.
The new fleet of trains is scheduled to enter service in 2024 and will be manufactured by Swiss engineering company Stadler.
The deal marks Legal & General’s fifth investment in the UK railway sector.
Tom Sumpster, head of infrastructure at LGIM Real Assets, said; “We are pleased to be financing the purchase of new rolling stock for the Wales & Borders franchise, helping to provide cutting edge transport with lower carbon emissions in Wales and to be a part of growing transport links between England and Wales.”
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