EIB provides financing to FS Italiane to purchase new high speed trains in Italy and Spain
Christian Fernsby ▼ | December 17, 2021
The European Investment Bank (EIB) is supporting the purchase of modern high speed trains by Trenitalia, owned by Ferrovie dello Stato Italiane S.p.A. ("FS"), via a €350 million private placement subscription of a green bond issued by FS, which will be passed on to Trenitalia through an intercompany loan.Article continues below
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The project boosts the expansion of high speed transport on the trans European transport network (TEN T) in Italy and Spain, promoting a single railway market and the transfer of road and air traffic to railways, in line with the 4th Railway Package of the European Union (EU).
Out of the total of €550 million approved for the whole project, providing for the purchase of 34 trains, the first tranche of €350 million was finalised through the subscription of a green bond under the Euro Medium Term Notes (EMTN) Programme of Holding FS, which confirms the FS Group’s commitment to sustainable finance.
The EIB will finance 50% of the purchase of 34 high speed trains by Trenitalia, 20 of which will be leased to its Spanish subsidiary ILSA to be used on the Madrid Seville Malaga, Madrid Barcelona and Madrid Valencia Alicante high speed lines in Spain.
The remaining 14 trains will be managed by Trenitalia and will be used on the Turin Trieste and Milan Naples Salerno Reggio Calabria lines. The project will enable Trenitalia to modernise its existing fleet for the Italian lines and, at the same time, increase the competitiveness and expansion of the Italian group in the high speed sector outside Italy. ■ What to read next
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