Rail finance

Rolling stock procurement structures

New fleets of rolling stock for use in UK passenger operations are procured using a variety of different structures. The most straightforward structure involves an operating lessor purchasing a new fleet from a rolling stock manufacturer under a purchase agreement and leasing it to an operator. Once the rolling stock lessor has taken delivery of the rolling stock from the manufacturer its priorities will be to:

1. •

   lease it to an operator (in order to generate income and thereby recover the cost of its investment in that rolling stock), and

2. •

   ensure that arrangements are in place for that rolling stock to be properly maintained (to preserve its value and ensure its marketability for re-leasing upon termination or expiry of the initial lease)

Purchase agreements

The purchase agreement will be between the lessor ...