Land Transport

In September 2008, during turbulent times in the US and international capital markets, DVB closed the financing of 29 state-of-the-art locomotives for Kansas City Southern de Mexico. The transaction utilised a unique structure available for equipment financing in Mexico, and provided our client with a 15-year full payout financing for these new GE ES44AC six-axle locomotives.

The deal was documented with a combination of US and Mexican papers, with security documentation filed in both jurisdictions. Further, DVB Bank SE - as a registered bank in Mexico - was able to provide the financing subject to low withholding tax requirements. DVB originated and structured the deal, and also was the sole debt provider under the transaction - fully secured inter alia by the financed locomotives - allowing a complex solution to be delivered to a US Class One railroad in a timely and efficient manner during tumultuous times.