Legal & General Investment Management’s real asset division has committed a further £200m (€228.4m) to support UK rail infrastructure.
LGIM Real Assets said it has provided, on behalf of its clients including Legal & General Retirement Institutional (LGRI), the long-term debt financing to support the purchase of new rolling stock for the Wales & Borders franchise by Equitix and SMBC.
Legal & General’s funding will help finance a new fleet of 60 trains for the Core Valley Lines (CVL) in and around Cardiff. The new CVL fleet is scheduled to enter operations in 2024.
Tom Sumpster, the head of infrastructure at LGIM Real Assets, said: “Despite the current political backdrop, this deal is a testament to our commitment to UK infrastructure.
“These are unprecedented times, and only those who are forward thinking and able to flex to the changing political and economic backdrop will prosper.”
A year ago, Legal & General provided a further £353m to help finance a fleet of 665 Bombardier Aventra trains that will be leased to Abellio East Anglia franchise from this year.
The latest transaction marks Legal & General’s fifth investment in the sector.
Eleanor Bucks, the managing director in charge of direct investments and real assets at Legal & General Retirement, said: “We are very pleased to have helped finance new rolling stock in Wales, as part of our continued investment in UK railway provision.
“This investment also complements our previous activity in the regeneration of key parts of Cardiff, including the area around the train station.”