Green light for growth
Investor confidence drives ELL forward
“The confidence of the investors is a strong endorsement of our performance and business model. ELL currently operates a fleet of over 300 locomotives, making it the largest and most flexible Vectron fleet in Europe. The new financing platform enables us to offer our customers more added value-services.”1
Christian Kern
CEO
ELL Group
Supporting ELL's
next phase of growth
As demand for sustainable rail transport capacity grows across Europe, ELL is helping freight and passenger operators access modern electric locomotive capacity at scale.1
Owned by BNP Paribas Asset Management Alts and Crédit Agricole Assurances since 2020, ELL provides electric locomotive leasing and maintenance services across key European markets. The company owns and operates Europe’s largest Siemens Vectron electric fleet, positioning it as an essential infrastructure service provider within the European rail ecosystem.1
RBC Capital Markets served as sole financial advisor, private placement agent, and ESG coordinator to ELL in structuring and executing the €1.4bn sustainability-linked green financing. The transaction extends ELL’s debt maturity profile and provides committed capital for fleet investment and maintenance infrastructure across its European network.1
The proceeds will refinance ELL’s existing debt and fund its upcoming growth program, including the strategic expansion of its Siemens Vectron fleet, currently the largest and youngest electric locomotive portfolio in Europe. The financing also strengthens ELL’s full-service capabilities across the continent.
This gives ELL long-term capital to support a platform aligned to the structural growth themes shaping European infrastructure, including decarbonization, electrification, digitalization and sovereignty.
Structuring for flexibility
To support ELL’s next phase of growth, the financing was structured as a €1.4bn long-term debt platform, combining bullet term loans across six tenors, ranging from 7 to 20 years, with a €400m sustainability-linked revolving capex facility.1
Together, these elements extend ELL’s debt maturity profile, optimize its liability profile and match its capital structure to the long-duration nature of its assets and customer contracts. The structure also provides committed capital for locomotive procurement and maintenance infrastructure across ELL’s European network.
This represents a meaningful departure from traditional asset-backed financing models typically seen in the sector, giving ELL flexibility to pursue its growth ambitions while maintaining key infrastructure financing-style creditor protections.
The breadth of lender participation, spanning 14 European banks and 7 institutional investors from the U.S. and Europe, demonstrates conviction across the banking and institutional investor communities in ELL’s business model, operational excellence and long-term growth strategy.1
A benchmark for sustainable rail financing
“Our investment conviction is that decarbonization, electrification, digitalization and sovereignty will drive infrastructure demand through 2050 and beyond. ELL is central to those convictions in supplying electrified locomotives which connect European businesses to markets and passengers to destinations. ELL has doubled in size since we acquired it for our clients in 2020. We are pleased to be entering its next phase of growth.”1
Mark Gilligan
Head of Infrastructure
BNP Paribas Asset Management
Executing for success
RBC Capital Markets’ role across financial advisory, private placement and ESG structuring was central to the successful execution of this complex, multi-tranche transaction. Drawing on deep infrastructure and transportation financing expertise, RBC helped deliver a financing solution designed around ELL’s long-term growth strategy and the evolving needs of sustainable European rail.
With more than 300 locomotives today and a target of 456 by 2030, ELL is building capacity at a time when decarbonization and electrification are reshaping European transport.1
The financing also demonstrates the strength of market appetite for ELL’s platform, bringing together a diversified group of banks and institutional investors across Europe and the US. With long-term capital in place, ELL is positioned to continue expanding its Siemens Vectron fleet and strengthen its role in the sustainable European rail infrastructure financing market.
