Akiem green refinancing extends maturities, raises CAPEX

Akiem green refinancing totals EUR 1.52 billion. It is intended to refinance existing debt while supporting future growth projects. The French company is one of Europe’s largest players. It leases and maintains locomotives and passenger trains.

Akiem green refinancing and debt maturities

According to Akiem, the green senior debt financing is meant to strengthen its balance sheet. It does so by extending and diversifying debt maturities. It combines bank loans with 7-year and 10-year maturities. It also includes private placements issued to investors in Europe and the United States. Those maturities run for 15 and 20 years.

Following the transaction, all of the group’s debt is labeled as green. In addition, that underscores the company’s commitment to sustainable financing. Akiem also says the refinancing gives it a stronger financial base. It says that base supports development of its leasing and maintenance activities in Europe.

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CAPEX facility and European growth plan

As reported by Railway PRO, Akiem has increased its CAPEX facility to EUR 700 million. The company says the investment line will support its growth plan in Europe. That plan covers the leasing and maintenance of locomotives and passenger trains. It is also banking on growth in the rolling stock market.

Separately, Akiem says it has expanded its group of partner banks. It now includes 14 European banks. The company has also added four new investors in private placements. It views that broader support as renewed confidence from financial markets in its business model.

CFO Renato De Lussu said the “100% green” refinancing reflects Akiem’s attractiveness. He also pointed to the strength of its market positioning. He said the financing has long maturities and competitive costs. In addition, he said it confirms the group’s commitment to long-term sustainable growth.

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