Crédit Agricole CIB actively supported the opening of the regional passenger rail market in France
Our Bank successfully closed two new landmark transactions for the French regional passenger rail sector with new financings for Regions Occitanie, Nouvelle Aquitaine and Hauts-de-France.
French regions are organizing actively the opening of the regional passenger rail market (TER) taking ownership of the rolling stocks currently owned by the historical operator SNCF and creating dedicated public rail transport entities to manage them.
In this context and following the closing of the first transaction with Région Grand Est in 2023 Will open in a new tab , our Bank successfully closed two new landmark transactions for the French regional passenger rail sector with Région Hauts de France (the “GAAM” Transaction) and a consortium of Région Occitanie and Région Nouvelle Aquitaine (the “SPIIT” Transaction). These transactions of respectively EUR 1.4bn and EUR 1.2bn will be both labeled as green loan financing mainly electric or bi-mode trains.
The financing structure is based on the setting up of a local public company, Société Publique Locale (SPL), directly owned by the Region(s). This public company will first finance the acquisition and maintenance of the TER fleet and then manage the trains over their useful life. The financings are backed by long-term concession agreements signed with the regions.
More details on the 2 transactions
• SPIIT – Nouvelle Aquitaine et Occitanie
o The EUR 1.2bn debt financing on Green Loan format raised by regions Nouvelle Aquitaine et Occitanie via their local public entity (SPL SPIIT) to finance the acquisition of c. 260 second hand TER trains (i.e. TER) currently owned by SNCF Voyageurs and c. 40 new trains. The financing is backed by a 42y concession agreement.
• GAAM – Hauts de France
o The EUR 1.4bn debt financing on Green Loan format raised by region Hauts de France via their local public entity (SPL GAAM) to finance the acquisition of c. 220 second hand TER trains (i.e. TER) currently owned by SNCF Voyageurs and c. 33 new trains. The financing is backed by a 40y concession agreement
With transport accounting for one-third of the budget of French regions, setting up a financing structure enabling the regions to meet its future expenses at a competitive cost is essential and ensures fairness between all rail operators.
Our role in these transactions
Crédit Agricole CIB played a leading role in structuring these transactions as:
• Arranger
• Hedging Bank
• Hedge Coordinator
• Facility and Security Agent
• Account Bank
• ESG Coordinator
These transactions were a great success for the Group thanks to the capacity of Crédit Agricole CIB and the Caisses régionales to team up in order to support the Regions relying on Crédit Agricole CIB Rail franchise strong expertise and regional network of Caisses régionales. This transaction will further reinforce the leading position of Crédit Agricole CIB’s Rail franchise in France.
Crédit Agricole CIB is pleased to have been able to support the Nouvelle Aquitaine, Occitanie and Hauts-de-France regions in opening up the TER market to competition. Thanks to our experience on the rail market in Europe and particularly in Germany, which has been open to competition since 1994, we have been able to use our expertise to serve the regions. This is a new French model and after three transactions in France, we are confident that other regions will follow suit.
Michel Cusenza
Rail Finance Group, Crédit Agricole CIB
Crédit Agricole Aquitaine is delighted to have been able to initiate with the Nouvelle Aquitaine Region this important step in the development of regional rail mobility, while furthering respect for the Energy Transition. Thanks to its expertise, the Crédit Agricole Group supports the strategic initiatives of the major developers in our regions. Congratulations to the teams.
Sandrine Kergosien
Head of Corporate Market and Specialised Business Lines, Crédit Agricole Aquitaine
This transaction is a good illustration of the determination and ability of Crédit Agricole du Languedoc and the Crédit Agricole Group to meet the territorial challenges of Mobility and the Energy Transition. Fully aligned with the strategy of the Regional Bank and the Group, it will make it easier for the population to access jobs and services in the regions, and will reduce carbon emissions from public transport.
Christophe Pouzol
Head of Real Estate Development, Crédit Agricole du Languedoc
This transaction is a good example of the Crédit Agricole Group's ability to meet the challenges of transition and be useful to its region. Enabling a sustainable investment in rail transport and facilitating access to the regions by reducing greenhouse gas emissions from residents' travel is a key challenge that Crédit Agricole Nord de France embodies through Banque des Transitions.
Jean Boutoille
Head of Business and Real Estate Markets, Crédit Agricole Nord de France
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