Financial close for Victoria’s high capacity metro trains project

By November 24, 2016Media Releases

MELBOURNE, AUSTRALIA: Evolution Rail has achieved financial close on the Victorian Government’s A$2 billion High Capacity Metro Trains project, just days after contractual close was achieved.

The project includes the delivery of 65 new high capacity trains being built in Victoria over the next six years, and the construction of new maintenance facilities in Pakenham East and Calder Park.

The Evolution Rail consortium comprises

  • Downer Group – Delivery and maintenance lead, fleet manufacture joint venture partner, equity investor
  • CRRC Changchun Railway Vehicles – Design and technology lead, joint venture fleet manufacture partner, equity investor
  • Plenary Group – Commercial and financial lead, asset manager, equity investor

Evolution Rail Chairman John Fitzgerald said this outcome was a result of a well-run process by the Victorian Government teamed with clarity-of-purpose among consortium members.

“This outstanding result is due to the clear decision-making from both the public and private sector teams, and a mutual determination to ensure this project is a success,” Mr Fitzgerald said.

“Teaming Australia’s leading infrastructure services company Downer with the world’s largest train manufacturer CRRC, and Australia’s leading PPP infrastructure manager Plenary, we have assembled a world-class team committed to delivering the Victorian Government’s largest ever order of trains.”

The debt will be drawn through an eight-year, eight-month facility provided by leading domestic and international banks Westpac, Bank of China, Bank of Communications, HSBC, ICBC, Intesa Sanpaolo, Mizuho and UOB.

Equity financing will come from all of Evolution Rail’s consortium members Downer (10%), CRRC (10%) and Plenary (30.1%), with the largest equity investment coming from funds managed and advised by leading global private markets investment manager Partners Group (49.9%).

Mr Fitzgerald said the equity group has been selected for the experience and capabilities they bring to transport projects, and their long-term commitment to local partnerships.

“Evolution Rail looks forward to delivering a successful public-private partnership for Victoria.”

The first of the new trains will come into service on Melbourne’s network in mid-2019.


About Downer Group
ASX-listed Downer is one of Australia’s leading infrastructure services companies. It has delivered rail industry services in Victoria for more than 150 years, and currently employs more than 4,000 Victorians. In 2015 Downer procured more than A$850 million worth of goods and services from Victoria businesses, demonstrating a commitment to building local industry capacity and capability.

About CRRC Changchun Railway Vehicles
CRRC Changchun Railway Vehicles is the world’s largest passenger and high speed rolling stock manufacturer. It has built trains for some of the world’s most famous rail networks, including Hong Kong, Rio de Janeiro, Beijing and Sydney, and CRRC projects in Chicago and Boston have revitalised local manufacturing industries.

About Plenary Group
Plenary Group is an independent, long-term investor, developer and manager of public infrastructure with 41 projects worth more than A$27 billion across Australia, Canada and the US. Established in Melbourne, its Australia projects include Sydney Metro Northwest, Gold Coast Light Rail and the Victorian Comprehensive Cancer Centre.


Evolution Rail media contact
Nataly Matijevic
Interface Manager
+61 412 646 656