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Deutsche Bahn leases ICE trains from Siemens Mobility for the first time

$SIE (+2,16 %)

To finance new trains, Deutsche Bahn is using a ten-year leasing model for the first time - for just under one billion euros. However, Deutsche Bahn still has to maintain the trains itself.


Berlin. Deutsche Bahn is using a leasing model for the first time to finance new ICE trains. The companies involved announced on Tuesday that 25 high-speed ICE3neo trains from the manufacturer Siemens Mobility are involved. The leasing contracts will each have a term of ten years, with maintenance remaining with Deutsche Bahn. The total financing volume amounts to just under one billion euros.


Deutsche Bahn has around 400 ICE trains. Siemens Mobility has ordered 90 ICE3neo trains, 39 of which are to be delivered by the end of the year. They can be used not only in Germany, but also for international connections to Brussels or Amsterdam. In future, they will also run in France and Poland.


With the financing model via a consortium led by BayernLB, Deutsche Bahn intends to modernize its ICE fleet. According to sources close to the state-owned company, the deal brings advantages, particularly in terms of debt and liquidity. Leasing is an additional building block that makes it easier to react to changes in the market.


Leasing models are much more common among shipping companies and airlines than at Deutsche Bahn. "The leasing model strengthens our financial capacity to act without relinquishing operational responsibility," said Wilken Bormann, CFO of DB Fernverkehr.


More: How the German government wants to prevent higher ticket prices


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https://www.handelsblatt.com/unternehmen/milliarden-deal-deutsche-bahn-least-erstmals-ice-zuege-von-siemens-mobility/100175704.html

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5 Comentarios

Not that DB will then come up with the idea of reducing the leasing installments as a contractual penalty for delays caused by itself....whereby... would be a win-win situation....
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My dear. The train once again
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I think Siemens is one of the most interesting German stocks. They were in a really bad way at one point and sites were closed here.
But I haven't dared to invest yet. How do you see the current valuation?
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@TradingHase
Has already done well. And no longer cheap, especially from a historical perspective.
But I can't say whether there will be industrial KGBs at Siemens again.
Because Siemens is also developing more and more into a tech group.
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@Tenbagger2024 actually, with siemens you buy both, industry and tech. i think this is also the biggest advantage of the company. they have been supplying the european industry with hardware for decades and can now also enter the software business without having to build up a new customer base :D
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