Financing

Reliance Rail obtained debt and equity financing for the design and manufacture of Sydney’s next generation fleet of suburban passenger trains in December 2006 when it entered into the NSW Rolling Stock PPP with RailCorp.

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

Reliance Rail’s bank debt will be refinanced in 2015 - two years after the last train is delivered. Bond debt refinancing will begin in 2016. The future refinancing of Reliance Rail’s debt does not have any impact on the delivery of Sydney's new trains between 2010 and 2013.

Reliance Rail's funding model utilised a hybrid structure, which resulted in the lowest cost financing in the history 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.