Market updates and sector developments

The EIB and HypoVereinsbank are providing credit lines totalling up to more than €2bn to Deutsche Bahn for the procurement of 90 new trains for the Munich S-Bahn. Deutsche Bahn will receive 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 purchase, BEG selected a lessor - LHI Leasing - in competitive tendering procedures. Under a leasing structure developed by LHI Leasing, the loans will be transferred to SPVs and secured by a debt service guarantee from the state of Bavaria.

The first newly developed S-Bahn trains are expected to enter service with passengers in late 2028. The vehicles feature modern passenger information equipment and can carry 1,841 people. The increased capacity is expected to allow for passenger growth in the coming decades and pave the way for mobility transition from road traffic to rail.

In other news…

Acquisition extends ALM capability
Numerix has acquired analytics and risk management solutions provider PolyPaths. With its expertise in structured finance and fixed income products, PolyPaths complements Numerix's existing capabilities and further extends its analytics asset class coverage.

A key advantage of the acquisition is the expansion of Numerix's asset liability management (ALM) capability, which extends the firm’s reach beyond the trading book to the banking book. Such growth will enable it to serve a broader range of clients and deliver greater value to the market.