Rock ‘n rolling stock: insurers find an opportunity in railway assets

Rock Rail

SPECIAL FEATURE: Investment strategy news and analysis specialist, Insurance Asset Risk, takes an in depth look at how Rock Rail has been transforming the financing of UK rolling stock



Insurance Asset Risk, (IAR), reports on how Rock Rail has transformed the financing of UK rolling stock, offering institutional investors a pipeline of direct investment opportunities. Since February 2016, Rock’s market changing approach has enabled some £2bn of direct investments in UK rail by insurers and other institutional investors.

IAR states the popularity of Rock’s proposition among insurers rests primarily on three features: the structuring of debt that attracts favourable treatment under Solvency II; a reliable pipeline of core infrastructure assets; and a breakaway from the Private Finance Initiative (PFI) contracts that have fallen out of favour with investors and policymakers alike.

Aviva Investors has invested in each of the three rolling stock deals Rock has won so far and Sinead Walshe, Aviva Investors associate director, states:

“We are looking at sectors where there is a strong pipeline of funding opportunities to match our clients’ needs and the UK rail sector is providing that currently with a franchise renewal occurring every 12-18 months.”

Mark Swindell, CEO Rock Rail, said:

“We are trying to inform insurers that we exist and that they don’t have to go via a fund to access our pipeline.”

For full IAR article please click here

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