CMS advises lenders on financing of new battery-electric train fleet for TransPennine Express
CMS has advised a group of institutional investors and banks comprising MetLife, Scottish Widows, Lloyds, NatWest, Barclays, Intesa Sanpaolo (IMI CIB Division) and NORD/LB on the senior debt financing of a new fleet of battery-electric bi-mode trains and associated rail infrastructure for TransPennine Express.
The senior debt financing forms part of the investment being made through the Next Generation Rail Fund, established by Aberdeen Investments and Rock Rail, to support the delivery of 29 new five-car trains as part of the £11bn Transpennine Route Upgrade, a major rail modernisation programme spanning routes serving Liverpool, Manchester, Manchester Airport, Leeds, Hull, York, Scarborough and Saltburn.
The new fleet will be manufactured by Alstom in Derby using its Adessia Stream platform. The trains will combine overhead electric power with battery capability, enabling them to operate across electrified and non-electrified sections of the network. Battery-charging infrastructure will also be installed at Hull, Scarborough and Saltburn stations.
The trains are expected to enter passenger service in the early 2030s. Each train will provide 300 seats and include enhanced accessibility features, including level access and a flat floor throughout the carriages. The associated maintenance contract is expected to support more than 100 jobs.
Katie Duffield, Infrastructure and Project Finance Partner at CMS, said: “We’re delighted to have advised the lender group on this significant financing. The transaction brings together institutional investors and commercial banks to support the delivery of modern rolling stock and associated infrastructure for the TransPennine network. It is an excellent example of a collaborative multi-tranche financing for strategically important UK transport infrastructure, and we congratulate all parties on reaching financial close.”
The CMS team was led by Katie Duffield and included Neha Arora, Jack Smithers, Niamh Neville, Gwen Edwards, Hannalie Gillott, Francis Beechinor-Collins, Kaies Kargar and Oskar Gregorczyk (Finance); Bill Carr, Kate Darracott, Max Weaver, Adam Fenby-Betts and Louise Marchington (Corporate); Chris Clark, Tara-Alexandra Burrows and Trinity Donaghue (Capital Markets); and Preena Gandhi and Cliona Kirby (Tax).
The CMS Infrastructure & Projects team has over 400 lawyers supporting clients worldwide. The team works in partnership with both private and public sector clients and has advised on some of the largest and first‑of‑a‑kind deals across the globe. CMS regularly advises on public works programmes and private sector financings in the areas of transport, health, education, waste, energy, defence, IT/telecoms, leisure, custodial and justice, ports, rail, roads and water.
