Rolling stock financier and asset management company Porterbrook has announced the successful closing of its £250 million Private Placement.
The transaction, which includes existing and new investors, has enabled the company to extend its debt maturity profile at attractive pricing and further diversify its investor base of US, UK, and Swiss institutions.
Porterbrook owns a quarter of the national passenger rail fleet, and in recent years has significantly diversified its portfolio including taking ownership of the Long Marston Rail Innovation Centre in Warwickshire, confirming a 49% stake in Brodie Engineering in Kilmarnock, and financing the redevelopment of Bletchley Depot for West Midland Trains.
The company is also funding a fleet of 10 new tri-mode trains for London North-Eastern Railway, and earlier this year acquired 30 Class 379 Electrostars to go on lease with Govia Thameslink Railway.
Rees Sutton, head of structured finance at Porterbrook, said: “Our priority is to demonstrate best value to rail users and taxpayers to secure our long-term position at the heart of a thriving UK rail sector.”
“Today’s successful closing supports our ability to invest in the future of this important industry, and highlights the strong appetite amongst investors to lend against stable, long term assets.”
The Notes were issued by Porterbrook Rail Finance Limited and rated Baa2 by Moody’s. The use of proceeds was designated green, with specialist consultant ISS-Corporate verifying that the company’s Green Framework is in line with ICMA and LMA green bond principles.
The green designation highlights Porterbrook’s ongoing commitment to sustainability. The business was recently named a global Sector Leader for the fourth year in a row and scored 100/100 in the annual GRESB assessment, which benchmarks the ESG performance of assets worldwide.
Image credit: Porterbrook
