Pension Insurance Corporation (PIC) is providing £102m (€116.2m) of debt financing to Corelink Rail Infrastructure, a UK rolling-stock lessor owned by DWS and Infracapital.

The specialist insurer of defined benefit pension funds said it will provide the financing to support the delivery of new rolling stock to Corelink, which will lease the trains to the operator of the West Midlands rail services.

Florence Carasse, the head of infrastructure debt at PIC, said: “We believe this transaction provides a high-quality investment that is well-aligned to serving our purpose, which is to pay the pensions of our current and future policyholders.

“We’re delighted to be able to make a commitment to support the modernisation of the UK’s essential transport infrastructure. The new fleets will also significantly provide additional passenger capacity essential for the development of the economy in the West Midlands.”

The transaction represents PIC’s first rolling-stock infrastructure deal.

Carasse said PIC has invested more than £5bn in greenfield and brownfield regeneration projects, as well as lending to corporate borrowers, with a focus on the UK.

Giorgiana Wegener, asset manager director, Infracapital, on behalf of Corelink, said PIC’s support is “essential to allow Corelink to continue the delivery of rolling stock for use on the West Midlands network, which ultimately translates into an improved travel experience to passengers”.

The rolling stock will consist of two new electric multiple-unit fleets to be built by Alstom and one new diesel multiple-unit fleet already built by CAF. The units are scheduled to enter service progressively in 2022 and 2023.

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