ELL successfully secures EUR 1.4bn of investment grade, sustainability linked green financing to support its next phase of growth
European electric locomotive lessor secures an investment grade, long term financing structure with additional committed, undrawn debt facilities to fund its upcoming growth programme from a diversified group of banks and institutional investors.
ELL, Europe’s leading electric locomotive lessor, has successfully secured a €1.4bn long-term debt platform financing, extending its debt maturity profile and procuring committed capital for its fleet expansion and maintenance infrastructure across its European network.
The refinancing comprises bullet term loans across several tenors (7, 8, 10, 12, 15 and 20-years) placed with 14 international banks and 7 institutional investors from the US and Europe. The package also includes a €400m sustainability-linked revolving capex facility reinforcing ELL’s commitment towards providing environmentally sustainable solutions.
The innovative financing structure departs from traditional asset-backed financing models, providing ELL with flexibility to meet its growth ambitions whilst maintaining key infrastructure financing style creditor protections.
Proceeds from this financing will refinance existing debt and fund ELL’s capital expenditure programme, supporting the company’s strategic expansion of its Siemens Vectron fleet—currently the largest and youngest electric locomotive portfolio in Europe—and enhancement of its full service capabilities serving freight and passenger operators across the continent.
The breadth of lender participation reflects the strong confidence in ELL’s business model, operational excellence, long-term growth strategy, and highlights investor and market conviction in the Company.
RBC Capital Markets served as sole financial adviser, private placement agent, and ESG coordinator. Milbank LLP provided legal counsel to ELL and Latham & Watkins LLP represented the lending syndicate.
About ELL
ELL is a leading electric locomotive lessor providing fleet and maintenance services to freight and passenger operators across key European markets. Owned by BNP Paribas Asset Management Alts and Crédit Agricole Assurances since 2020, ELL owns and operates Europe’s largest Siemens Vectron electric fleet and is an essential core infrastructure service provider in Europe.
Christian Kern, CEO of ELL Group, said: “The confidence of the investors is a strong endorsement of our performance and business model. ELL currently operates a fleet of over 300 locomotives, making it the largest and most flexible Vectron fleet in Europe. The new financing platform enables us to offer our customers more added value-services.”, commented.
Mark Gilligan, Head of Infrastructure at BNP Paribas Asset Management Alts, added: “Our investment conviction is that decarbonisation, electrification, digitalisation, and sovereignty will drive infrastructure demand through 2050 and beyond. ELL is central to those convictions in supplying electrified locomotives which connect European businesses to markets and passengers to destinations. ELL has doubled in size since we acquired it for our clients in 2020. We are pleased to be entering its next phase of growth with the support of our lenders and this innovative platform financing. It allows us to scale the delivery of best-in-class zero-emission locomotives to Europe.”