KfW IPEX-Bank and Nord/LB are lending ( US$142.58 million ) to German public transport operator Rhein-Neckar-Verkehr ( RNV ) for the purchase of a new fleet of trams.

KfW IPEX-Bank has taken on the role of syndicate leader, while Nord/LB is also acting as account bank. Alongside the commercial syndicate financing, the European Investment Bank ( EIB ) is providing a long-term loan.

Overall, the investment volume of the total procurement, including the ordering of optional vehicles and price adjustments, tops €400 million. The funds will be used to acquire 34 new trams.

RNV is taking an option from the tram order from 2018, which was also financed by KfW IPEX-Bank and Nord/LB, and used to acquire 80 trams of the same type. In addition, another part of the loan is being used to pre-finance public grants.

The new trams can be used in double traction, and have a length of up to 60 metres. They are being supplied by Czech manufacturer Skoda Transportation, and will operate as public transport in the cities of Mannheim, Ludwigshafen, and Heidelberg. The new Rhein-Neckar-Tram ( RNT ) vehicles will significantly increase transport capacities.

“We're delighted to be supporting our long-standing customer RNV once again and, in so doing, strengthening public transport in Germany,” says Aida Welker, a member of the KfW IPEX-Bank management board. “It's very important for us to always be on the side of our customers and to offer tailor-made solutions.”

"The shift of traffic flows to rail is an important element in the transport turnaround and therefore contributes to greater sustainability," adds Heiko Ludwig, global head of the structured finance department at Nord/LB.

“The procurement of RNT is the largest investment in the history of our company and will form the backbone of our fleet for decades to come,” says RNV commercial director Christian Volz. “Realizing projects of this magnitude requires reliable and strong support in terms of financing.”