Perspective
25 July 2018
UK rolling stock financing: Are institutional debt providers being realistic about the risks?
In:
Transport
Region:
Europe
Coextensive with an influx of new rolling stock lessors into the UK rail market, institutional debt providers are lending for 20-plus years to fund UK rolling stock procurements. But have they got the risk-reward equation right given the deals are backed by leases to seven or eight-year operating franchises, the demise of Section 54 re-leasing guarantees for lessors and the growing problem of mid-life rolling stock displacement?
