Post by M***@dastardlyhq.comOn Sun, 12 Jan 2025 16:31:58 -0000 (UTC)
Post by TweedProject lead Phil Whittingham said Virgin will choose between two suppliers
it has shortlisted and is evaluating models from Alstom, Siemens, Hitachi
and Talgo. The order is likely to be worth more than £500m, based on the
value of recent deals for similar rolling stock.
Virgin aims to commence services through the Channel Tunnel in 2029, with
the project requiring close to £1bn in launch funding, Mr Whittingham said.
Sir Richard will take as big an equity stake as possible, potentially
supported by a partner or partners.
Who's going to pay for them? I doubt virgin group has a spare 500m knocking
around. Presumably a loan but who would pony up in the current economic
climate?
As for the startup, give me a break. What are they going to do, give a
recently retired 373 a refurb and hope passengers don't notice its an old
E* train?
This last July:
https://ionanalytics.com/insights/infralogic/virgin-issues-teasers-for-cross-channel-rail-capital-raise/
Virgin Group has kicked off its quest for investors to back a new
high-speed rail service on the Channel Tunnel route, the first likely
challenger to Eurostar’s monopoly in the region.
Two separate teasers, for the equity and debt processes, were distributed
to the market earlier this month, with information memorandums due to be
issued next week, according to sources.
Under the codename Project Bullet, Virgin is gauging interest from
infrastructure investors on a GBP 200m equity raise, with the Sir Richard
Branson-founded company providing another GBP 50m equity cheque, according
to a teaser seen by Infralogic.
“It’s a huge undertaking to establish a new cross-Channel operator but the
route is ripe for change and would benefit from competition,” a Virgin
Group spokesperson told Infralogic in an emailed statement.
“Virgin is not committing to launching a service just yet, however, we can
confirm that Virgin continues to advance it’s planning and preparation,
which includes seeking an equity raise, and we are delighted with the
progress so far,” the spokesperson added.
Virgin wants to enter the London-Europe high speed rail market by 2028,
with plans to connect London, Paris, Brussels and Amsterdam. Eurostar has
had a monopoly over cross channel foot passenger rail services for three
decades, though it competes with the car shuttle service Eurotunnel.
In a parallel process, Virgin is also looking to raise hundreds of millions
of debt to finance the procurement of 12 brand new trains, with a target of
bringing them to service in 2028.
The selection of equity partners, with an IRR target of over 20%, is slated
to be complete by October, with the debt financing and the order of the
rolling stock due to follow in December, according to the teaser.