German bank NORD/LB and a banking consortium have agreed a refinancing package for UK public transport operator Go-Ahead, including funding for electric buses and depot infrastructure.

German bank NORD/LB, together with a group of lenders, states it has finalized a refinancing agreement with Go-Ahead, one of the largest public transport operators in the United Kingdom and the main bus operator in London. The transaction combines the refinancing of existing debt with additional facilities aimed at supporting fleet electrification and related infrastructure investments.

Following its takeover in 2022 by Kinetic, Go-Ahead secured in October 2023 a syndicated refinancing package to restructure existing debt and support a five-year strategic plan.

NORD/LB issues financing for Go-Ahead

According to NORD/LB, the financing package includes a supplementary capital expenditure facility dedicated to the expansion of Go-Ahead’s electric bus fleet across London and other UK regions. A further facility is allocated to depot upgrades, covering the infrastructure required to operate and maintain both new zero-emission vehicles and existing fleets.

Go-Ahead operates more than 6,000 buses across the UK. The company has been engaged in zero-emission bus operations for over a decade, with ongoing fleet renewal and infrastructure adaptation programs.

NORD/LB states that the transaction forms part of its broader activity in financing infrastructure assets with decarbonisation components in the UK and international markets. The bank indicates that it will continue to support projects related to transport electrification in Europe.

Legal advisory on the transaction was provided by Simpson Thacher Bartlett for the banking consortium and by Latham Watkins for Go-Ahead.

“We are delighted to support the refinancing of Go-Ahead and the electrification of its bus fleet,” said Sean Cook, Head of Infrastructure Origination at NORD/LB. “As the UK accelerates its journey towards net zero, the decarbonisation of public transport has never been more important. Go-Ahead is leading the way in decarbonising the UK’s bus network, and we are proud to support them in delivering on this critically important mission.” 

“This refinancing represents a significant step in strengthening Go Ahead’s long term funding platform while supporting the continued decarbonisation of our operations and increase capacity to invest in assets across our network to improve services to our customers.” Said Gonzalo Velasco Gaztanaga, Group Structured Finance Director, The Go Ahead Group. “We appreciate the support from NORD/LB and the wider bank group, whose experience in infrastructure and sustainable finance has been instrumental in delivering this transaction.”