Legal & General backs new fleet of East Anglia trains in latest UK infrastructure funding

Legal & General is helping to finance a new state-of-the-art fleet of 58 trains, or 378 vehicles, for the East Anglia rail franchise run by Abellio. The long term debt investment by Legal & General Retirement (LGR) and LGIM clients is part of a total £600 million commitment made from investors to Rock Rail Infrastructure.

Legal & General has invested £8 billion in UK infrastructure, direct investments and urban regeneration projects, and aims to invest £15 billion. Long-term capital is used to invest in the new assets, providing income for pension funds and stimulating UK economic growth.

Kerrigan Procter, Managing Director of LGR (photo, top right), said: “Transport infrastructure is a great investment for us, as the long term income it produces helps to pay our customers’ pensions. In transport we’ve backed the UK’s first new port in over two decades with £250 million of funding, and are now helping to modernise the UK’s railways. Infrastructure investment creates new jobs and drives economic growth, which is good for business and customers.

The new rolling stock, supplied by Swiss manufacturer, Stadler, will include climate-controlled air-conditioning, Wi-Fi, power sockets, latest information services and reduced noise for passengers.

Nicholas Bamber, Head of Private Credit, LGIM Real Assets, added: “This is our first rail-related private debt investment for LGIM’s clients and further expands their exposure to essential infrastructure projects in the UK. There is a considerable need in the UK for new rolling stock in order to reduce overcrowding and improve train services and our clients have a significant appetite to finance such assets.”