LGIM Real Assets (Legal & General) has awarded £200m in long-term debt financing on behalf of its clients to support the procurement of trains in the UK.

The funding will be utilised to support the purchase of rolling stock for the Wales & Borders franchise by Equitix and SMBC.

A fleet of 60 trains for the Core Valley Lines (CVL) in and around Cardiff will be procured from Swiss rolling stock manufacturer Stadler.

Scheduled to enter service in 2024, the fleet will comprise 36 light-rail overhead electric and battery powered trains and 24 diesel, battery and overhead electric (tri-mode) trains.

“A fleet of 60 trains for the Core Valley Lines (CVL) in and around Cardiff will be procured from Swiss rolling stock manufacturer Stadler.”

LGIM Real Assets Infrastructure head Tom Sumpster said: “We are pleased to be financing the purchase of new rolling stock for the Wales & Borders franchise, helping to provide cutting edge transport with lower carbon emissions in Wales and to be a part of growing transport links between England and Wales.”

Once delivered, the vehicles will help increase rail services capacity around Cardiff.

Both vehicle types will replace the older diesel rolling stock, which will result in lower emissions.

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The tri-mode trains will be capable of running on electricity, battery and diesel, thereby supporting a gradual shift from all-diesel powered operations.

The investment is Legal & General’s fifth financing in the UK rail sector.

Legal & General Retirement Direct Investments and Real Assets managing director Eleanor Bucks said: “We are very pleased to have helped finance new rolling stock in Wales, as part of our continued investment in UK railway provision.

“This investment also complements our previous activity in the regeneration of key parts of Cardiff, including the area around the train station.”