Porterbrook raises £250m to support train investments. Credit: DAVID HOLT.

UK-based train leasing company Porterbrook has completed a £250m private placement to refinance its 2019 public bond.

The funding was raised through a group of institutional investors based in the US, UK, Canada and Switzerland.

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Issued by Porterbrook Rail Finance, the senior secured notes are set to mature in 2028.

Porterbrook Structured Finance head Stefan Rose said: “Today’s private placement is an important milestone for Porterbrook, and leaves us in a strong position to continue our investment strategy.

“We were encouraged by the investor demand, particularly in the US, and it is clear that there is confidence in our asset-management proposition.”

The financing is said to help the company in achieving its business goals and support its position in the UK rail market.

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"We were encouraged by the investor demand, particularly in the US, and it is clear that there is confidence in our asset-management proposition."

Rose added: “This transaction builds on the refinancing of our corporate facilities, which we completed earlier in the year, and ensures that we now have a diversified funding group including both banks and institutional investors to support our new bids and fleet upgrades in the near future.”

MUFG and NatWest Markets acted as Joint Placement Agents, while Rothschild offered financial advice.

Porterbrook focuses on leasing all types of railway rolling stock and associated equipment to the UK market.

To date, it has made an investment of nearly £2.7bn in new trains and around £300m in rolling stock maintenance.

In September, the company signed an agreement with Rolls-Royce to install MTU Hybrid PowerPacks on two test trains.

The MTU Hybrid PowerPacks can convert Class 168 and Class 170 diesel-only trains into hybrid-electric operation.