Ashurst advises SocGen on locomotive financing for SBB Cargo

Ashurst advised Société Générale on the financing of locomotives for SBB Cargo.

Société Générale is providing the financing for the acquisition of 35 locomotives of the type Vectron AC manufactured by Siemens Mobility. The locomotives are acquired by Reichmuth & Co Investment Management AG through its investment vehicle LokRoll 3 AG and will be made available in a leasing structure to SBB Cargo for eight years through the asset manager Northrail GmbH. The new locomotives will primarily operate in Switzerland, but can also be used for cross-border service in Germany and Austria. They will be equipped both with the European Train Control System (ETCS) BL3 and the required national train control systems. Local maintenance of the locomotives will be provided by Siemens Mobility. The delivery of the locomotives is scheduled for 2024.

The Ashurst team was led by partner Derk Opitz. He was assisted by senior associate Alexandra Heitmann and senior transaction lawyer Ariana Fazlic (all Project Finance). Advice on Swiss law was provided by a team from Advestra comprising partner Dr Alexander von Jeinsen and associate Annina Hammer.

Ashurst's German project finance practice regularly advises on asset finance transactions in the context of regional rail passenger transport financings. With the recently completed transaction, the project finance team around partner Derk Opitz successfully extends its advice to locomotive financing.