EIB and UniCredit finance new Munich S-Bahn trains with more than €2 billion via an LHI Leasing structure

August 02, 2023

- Deutsche Bahn is procuring 90 new trains for the Munich S-Bahn, as part of its transport contract with the Bavarian Railway Company BEG.
- LHI has designed a leasing model for the new S-Bahn trains.
- The financing is subject to a guarantee from the German state of Bavaria.

The European Investment Bank (EIB) and the German affiliate of UniCredit, HypoVereinsbank, are
providing credit lines totalling up to more than €2 billion to Deutsche Bahn for the procurement of 90 new
trains for the Munich S-Bahn. Deutsche Bahn will receive the financing for the new vehicles from Bayerische
Eisenbahngesellschaft (BEG), which plans, finances and controls the regional and S-Bahn traffic in Bavaria
on behalf of the Bavarian Ministry of Transport.
To finance the trains purchase, BEG selected a lessor, LHI Leasing based in Pullach near Munich, and two
investors, EIB and Unicredit, in competitive tendering procedures. The Free State of Bavaria enables very
favorable financing conditions through a capital service guarantee.
The financing will go towards Deutsche Bahn AG’s procurement of 90 new S-Bahn trains from manufacturer
Siemens Mobility.
The first newly developed fully walk-through and 200 metre-long S-Bahn trains are expected to enter
service with passengers in late 2028. The more comfortable trains feature modern passenger information
equipment and can carry 1 841 people. The increased capacity will allow for passenger growth in the
coming decades and pave the way for the mobility transition from road traffic to rail.
Under a leasing structure developed by LHI Leasing GmbH, the loans are transferred to special purpose
vehicles (SPVs) and secured by a debt service guarantee from the state of Bavaria.
“We are delighted to support the modernisation of public transport in the metropolitan Munich area,” says
EIB Vice-President Ambroise Fayolle, who is responsible for financing in Germany. “Appealing regional
transport solutions are key to fostering the transition to climate-friendly mobility by encouraging commuters
to switch from road to rail. This also helps cut the CO2 emissions and traffic congestion caused by the use
of private cars.”
"Our participation in the financing of modern S-Bahn trains in Munich is in line with our strategy: “We are
actively involved in the sustainable transformation of society and support the local communities in Europe
as a banking partner in their development," says Christian Reusch, member of the Management Board
of HypoVereinsbank. responsible for client solutions.
“The funding is one of the largest in this area. It shows what sets us apart as a bank: as a pan-European
institution, we are able to offer an innovative financing solution of this size. At the same time, we are
deeply rooted in the regions where our customers are based – in this case the Munich region and the
Free State of Bavaria,” adds Jan Kupfer, Corporate Customers Director at HypoVereinsbank.
98-100, boulevard Konrad Adenauer L-2950 Luxembourg – T (+352) 43 79-21000 – –
“The lease financing of the new Munich S-Bahn trains is perfectly in line with our purpose: supporting the
expansion of sustainable mobility. We are very happy to be able to make a corresponding contribution
with this high-volume transaction and to actively use the resource-saving vehicles on our doorstep in the
future,” said Head of Structured Finance/Rolling Stock at LHI Stefan Wildgruber.
Background information
The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned
by its Member States. It makes long-term finance available for sound investment in order to further EU
policy goals. The EIB’s key priorities are climate and the environment, development, innovation and skills,
small and medium-sized businesses, infrastructure and cohesion. It works closely with other EU institutions
to foster European integration, promote the European Union’s development and support EU policies in
more than 140 countries worldwide.
HypoVereinsbank is part of UniCredit, a pan-European commercial bank with a unique service offering
in Italy, Germany, and Central and Eastern Europe. Its group-wide purpose is to empower communities to
progress, delivering best-in-class services to all stakeholders, unlocking the potential of its customers and
its people across Europe. It serves over 15 million customers worldwide. They are at the heart of what it
does in all of its markets. UniCredit is organised into four core regions and two product factories: Corporate
Solutions and Individual Solutions. This enables the group to work in close proximity to its customers,
leveraging its scale to develop and offer the best products across all of its markets. Digitalisation and its
commitment to environmental, social and governance principles are key service enablers. They help it
deliver excellence to stakeholders and create a sustainable future for its customers, communities and
The LHI Group consists of LHI Holding GmbH and LHI Leasing GmbH, which was founded in 1973, and
their subsidiaries. The product portfolio ranges from the design of structured finance for companies, real
estate management and asset management services to the conception of investment products in the asset
classes of real estate, renewable energy and aviation. The target group for the investment offer is primarily
professional and semi-professional investors. In total, the LHI Group manages a portfolio of over €14 billion.
The company headquarters are located in Pullach, near Munich, with international representation in Poland
and Luxembourg. The group employs more than 270 people.
Since the 1996 railway reform, regional and S-Bahn suburban rail transport in Germany has been the
responsibility of the individual state governments. The state of Bavaria delegates this task to Bayerische
Eisenbahngesellschaft (BEG), which plans, finances and manages regional passenger rail transport. As
a state public service, it receives financial subsidies from taxpayers’ money transferred from the German
federal government to the states. To use these state funds efficiently and offer the best possible service to
passengers, Bayerische Eisenbahngesellschaft conducts Europe-wide tender procedures for its transport
services contracts. The contract is awarded to the transport company with the best tender in terms of both
quality and price.

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