VTG, one of Europe’s largest private rail freight wagon leasing and logistics companies, has secured a €340 million promotional loan from KfW IPEX-Bank to finance the purchase of new freight wagons. The financing, arranged and syndicated by KfW IPEX-Bank as sole mandated lead arranger and bookrunner, marks the first time KfW programme 269 – an investment credit for sustainable mobility – has been used as syndicated financing for a German rail transport company.
The loan, with a term of seven years, will be integrated into VTG’s existing financing platform. It’s provided by KfW IPEX-Bank alongside four other core banks participating as mandated lead arrangers, with KfW IPEX-Bank also acting as facility agent for the international consortium. This structure highlights a growing trend of financial institutions prioritizing sustainable transport solutions.
The new wagons will encompass a variety of types, including tank wagons, open and closed freight wagons, and intermodal wagons. This diverse portfolio reflects VTG’s broad service offering and its commitment to accommodating a wide range of freight transport needs. The investment directly supports the shift of goods transport from road to rail, a key strategy for reducing carbon emissions in the European transport sector.
KfW Programme 269: Driving Sustainable Mobility
KfW programme 269, formally known as the “Investitionskredit Nachhaltige Mobilität Individualvariante” (Investment Credit Sustainable Mobility Individual Variant), is designed to incentivize investments in environmentally friendly transportation infrastructure and vehicles. By utilizing this program, VTG is demonstrating its commitment to sustainability and aligning its business practices with broader environmental goals. The program’s application as syndicated financing in this instance is a significant development, potentially opening doors for other rail companies to access similar funding mechanisms.
VTG’s Role in European Rail Freight
Headquartered in Hamburg, Germany, VTG operates a fleet of approximately 84,800 freight wagons, making it the largest private fleet in Europe. The company’s focus on tank cars, intermodal wagons, standard freight wagons, and sliding-wall wagons positions it as a critical player in the continent’s supply chain. The addition of new, modern wagons will not only enhance VTG’s capacity but also improve the efficiency and environmental performance of its operations.
Financial Details and Consortium Involvement
The €340 million loan is a substantial investment that underscores the confidence KfW IPEX-Bank and the participating banks have in VTG’s business model and its commitment to sustainable practices. Aida Welker, Member of the Management Board of KfW IPEX-Bank, emphasized the bank’s pleasure in supporting VTG’s expansion and utilizing the KfW program for this innovative financing structure. Welker stated the financing “contributes to the shift of goods transport from the road to rail and strengthens decarbonisation in the transport sector in Germany and Europe.”
Dr. Mani Herold, CFO of VTG, expressed pride in being the first transport company to successfully secure such a large promotional loan from the KfW program. He highlighted the importance of creating the conditions for more climate-friendly rail transport and acknowledged the reliable and excellent cooperation with KfW IPEX-Bank in implementing this financing.
Broader Context: Rail Freight and Decarbonization
The European Union is actively promoting a modal shift from road to rail as part of its broader decarbonization strategy. Rail freight is significantly more energy-efficient than road freight, resulting in lower greenhouse gas emissions per ton-kilometer. Investments like this one, facilitated by KfW IPEX-Bank and supported by KfW’s promotional programs, are crucial for accelerating this transition.
The financing also comes amidst a wider trend of increased investment in rail infrastructure and rolling stock across Europe. Several countries are modernizing their rail networks and procuring new locomotives and wagons to meet growing demand and improve service quality. This investment is driven by both environmental concerns and the economic benefits of efficient rail freight transport.
Recent VTG Financing Activity
This €340 million loan follows other significant financing arrangements for VTG. In June 2025, KfW IPEX-Bank structured and arranged a €550 million refinancing of an existing CAPEX and Revolving Credit Facility (RCF) for VTG, involving a consortium of 14 banks. This earlier refinancing included a €100 million RCF and a €450 million CAPEX facility, demonstrating a continued strong financial partnership between VTG and KfW IPEX-Bank. The current loan builds on this established relationship and further strengthens VTG’s financial position.
The combination of these financing initiatives positions VTG for continued growth and allows the company to play a leading role in the development of a more sustainable and efficient rail freight network in Europe. The company’s commitment to modernizing its fleet and leveraging innovative financing solutions underscores its dedication to environmental responsibility and long-term value creation.
