Reliance Rail

Financing

Reliance Rail raised approximately $2.4 billion in debt and $137 million in equity financing in December 2006 for the design and manufacture of Sydney’s next generation fleet of suburban passenger trains.

Sydney Trains makes payments to Reliance Rail based on the availability of the train sets over the life of the contract.

Reliance Rail’s bond and bank debt will be refinanced periodically through the life of the contract, commencing  between 2016 and 2018. This future refinancing of Reliance Rail’s debt does not have any impact on the delivery of Sydney's new trains.

Reliance Rail's funding model was the lowest cost financing of any PPP in Australia at the time. The funding structure was acknowledged with the PPP deal winning CFO Magazine's Annual Structured Finance Transaction of the Year Award.