Porterbrook closes £250 million private placement, strengthening rail sector investment

Credit: Porterbrook

Porterbrook, a prominent UK-based rail asset management and financing company, has announced the successful completion of a £250 million Private Placement. This transaction brings together existing and new investors, allowing the company to extend its debt maturity profile with favourable pricing while broadening its investor network across U.S., UK and Swiss institutions.

Porterbrook, which owns approximately 25% of the national passenger rail fleet, has actively diversified its portfolio in recent years. This includes initiatives such as the acquisition of the Long Marston Rail Innovation Centre in Warwickshire, a 49% stake in Brodie Engineering based in Kilmarnock and the financing of the Bletchley Depot redevelopment for West Midlands Trains. Porterbrook is also backing a new fleet of 10 tri-mode trains for London North-Eastern Railway (LNER) and has recently acquired 30 Class 379 Electrostars to be leased to Govia Thameslink Railway (GTR).

Rees Sutton, Head of Structured Finance at Porterbrook, said: “Our priority is to demonstrate best value to rail users and taxpayers to secure our long-term position at the heart of a thriving UK rail sector. Today’s successful closing supports our ability to invest in the future of this important industry, and highlights the strong appetite amongst investors to lend against stable, long term assets.”

The transaction, executed by Porterbrook Rail Finance Limited, has been rated Baa2 by Moody’s, with the proceeds marked for green initiatives. An independent review by ISS-Corporate verified that the company’s Green Framework aligns with ICMA and LMA green bond principles. Porterbrook’s continued commitment to sustainability has been underscored by its recent recognition as a global Sector Leader for the fourth consecutive year, achieving a top score of 100/100 in the annual GRESB assessment, which evaluates ESG performance of global assets.