Nordic Re-Finance Enters German Market with DB Cargo Deal, Secures €250M Green Financing

Locomotive leasing specialist Nordic Re-Finance has finalized a landmark agreement with DB Cargo Scandinavia to acquire 15 Alstom TRAXX AC2 locomotives, marking its strategic entry into the German market. The deal, which includes a partial sale-and-leaseback arrangement, is bolstered by a new €250 million green financing facility designed to accelerate the company’s expansion and fleet electrification across Europe.

Main Body:

In a significant move to solidify its position in the European rolling stock market, Nordic Re-Finance has announced a multifaceted agreement with DB Cargo Scandinavia. The transaction involves the acquisition of 15 proven Alstom TRAXX AC2 electric locomotives, which will be deployed on critical freight corridors connecting Sweden, Denmark, and Germany. This deal not only expands Nordic Re-Finance’s fleet to over 215 units but also establishes a new strategic partnership with one of Europe’s largest rail freight operators, providing a crucial foothold in the competitive German market. “We are delighted to embark on this strategic partnership as we expand our operations in Germany,” said Thorsten Priebe, CEO of Nordic Re-Finance. “These mid-life electric locomotives align perfectly with our strategy of providing high-quality leasing solutions to European rail freight customers.”

The Alstom TRAXX AC2 is a workhorse of European rail freight, renowned for its reliability and cross-border capabilities. As an AC (alternating current) locomotive, it is specifically engineered to operate seamlessly across the different electrification systems of Northern Europe, primarily the 15 kV / 16.7 Hz system used in Germany and Sweden and the 25 kV / 50 Hz system in Denmark. With a power output of approximately 5.6 MW and a top speed of 140 km/h, these units are ideally suited for heavy freight haulage. The “mid-life” status of the acquired locomotives indicates they are proven assets with significant operational life remaining, allowing Nordic Re-Finance to offer cost-effective and dependable leasing options without the lead times associated with new builds.

The acquisition is underpinned by a major corporate refinancing completed in December 2023, where Nordic Re-Finance secured a €250 million multi-currency financing package fully underwritten by Natixis CIB. A key component of this facility is a green loan, which directly supports the company’s strategy to enhance its portfolio of electric locomotives and reduce transport emissions. This financial firepower enables the company to modernize its fleet and expand into new markets, a vision shared by its majority shareholder, Infranity, which acquired the firm in March 2024. “The completion of this refinancing gives us the flexibility we need to expand and modernize our fleet and accelerate the transition to electric traction,” commented Magnus Granlund, the company’s CFO.

Key Takeaways

• German Market Entry: The deal marks Nordic Re-Finance’s official entry into Germany’s rail freight market, a key logistics hub in Europe.
• Strategic Green Financing: A new €250 million financing package, including a green loan, will fuel the company’s growth and its focus on sustainable, electric-powered rolling stock.
• Partnership with a Major Operator: The transaction establishes a new relationship with DB Cargo, strengthening Nordic Re-Finance’s credibility and network across the continent.

Editor’s Analysis

This transaction is a clear indicator of the evolving dynamics in the European rail sector. It highlights the growing influence of specialized rolling stock companies (ROSCOs) like Nordic Re-Finance, which provide essential fleet flexibility and capital management solutions to major operators. The use of a sale-and-leaseback model allows an established carrier like DB Cargo to unlock capital from its assets for other strategic investments, while ensuring continued operational capacity. Furthermore, the explicit link to a “green loan” facility demonstrates that sustainability is no longer a peripheral concern but a central driver of financial and operational strategy in the rail industry. This move positions Nordic Re-Finance as a key enabler of electrified, cross-border freight on the vital Scandinavian-German axis.

Frequently Asked Questions

What is the primary significance of this deal for Nordic Re-Finance?

The deal is significant for two main reasons: it marks the company’s strategic expansion into the vital German rail market and establishes a new partnership with DB Cargo, one of Europe’s largest freight operators, significantly boosting its continental presence.

Why are the Alstom TRAXX AC2 locomotives suitable for this operation?

The TRAXX AC2 locomotives are multi-voltage electric units designed to operate across different power systems, specifically those in Germany, Sweden (15 kV AC), and Denmark (25 kV AC). This technical capability makes them ideal for seamless cross-border freight transport along these key corridors.

How is Nordic Re-Finance funding this expansion?

The acquisition and future growth are supported by a €250 million multi-currency financing package secured in late 2023. This facility includes a dedicated green loan, which is intended to accelerate the electrification of the company’s fleet and its expansion into new European markets.