Sweden-based AB Transitio has signed a $55.71m (Skr480m) loan agreement with the European Investment Bank (EIB) for the procurement of new regional trains.

The loan amount will be utilised for acquiring 12 new double-decker electric multiple units (EMUs) that will offer regional services with Mälardalstrafik MÄLAB AB in the Stockholm-Mälaren area.

By replacing the ageing rolling stock, the new trains are anticipated to provide enhanced service, reliability, comfort, flexibility, and increased capacity.

They will be owned by Transitio and operated by Mälardalstrafik MÄLAB AB on regional tracks surrounding Sweden’s capital.

EIB vice-president Thomas Östros said: “As the EU climate bank, the EIB is investing heavily in alternative modes of transport to give people an incentive to leave their cars at home as much as possible.”

The new units are expected to provide sustainable transport for commuters, offering an incentive to transition away from road traffic.

Transitio CEO Magnus von Bahr said: “The acquisition of an additional 12 double-decker trains will further increase the capacity for regional services in the Stockholm-Mälaren region and support the mission of increasing travel by train.”

Furthermore, the new trains will result in minimised operation and maintenance expenses for the operator.

On the basis of the trend witnessed between 2017 and 2019, the number of commuters is also expected to increase again, giving more reasons to enhance the train capacity.

AB Transitio buys, finances and administers trains for Swedish public transport associations, which mutually own Transitio through part ownership.

Primarily, Transitio leases train units to these regional public transport associations and/or their operators.

In May this year, EIB signed a $182m (€150m) finance contract with the Indian Government for the Pune Metro Rail project’s second portion in Maharashtra through a virtual signing ceremony.