Infracapital signs financing package for leading UK rail freight operator
Infracapital, the infrastructure private equity investment arm of M&G, has signed a £218m financing package for its leading UK rail freight business, GB Railfreight (GBRf), refinancing its existing financing facilities and renewing a capex facility to support future business growth.
The deal comprises a £143m refinancing with a 10 year private placement from PGIM and £75m of facilities from HSBC UK.
Rail freight plays a vital role in the UK economy, contributing £2.5billion annually and is an environmentally friendly solution for transporting goods, compared to road haulage. Most recently, GBRf introduced its Class 99 hybrid locomotives, the most advanced bi-modal locomotives for freight services in the UK which puts them at the forefront of further decarbonisation of the industry.
Infracapital acquired GBRf in September 2019 via Infracapital Partners III. Fund III’s strategy1 is to invest sustainably in essential brownfield infrastructure to meet the changing needs of society and support long-term economic growth across Europe.
Ed Barrie, Director at Infracapital, said: “This refinancing strengthens GBRf’s long term capital structure and reflects the continued strong support from high-quality lender for both the business and the UK rail freight sector. It is also the outcome of our positive ongoing partnership alongside the GBRf management team, with whom we are working closely to ensure the business is well positioned for sustained success.”
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For further information, please contact:
Infracapital via Teneo
Tom Murray
Colette Cahill
E: Infracapital@teneo.com
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About Infracapital
Infracapital invests in, builds and manages a diverse range of essential infrastructure to meet the changing needs of society and support long-term economic growth. We take an active role in all of our investments, whether nascent or large, to fulfil their potential and ensure they are adaptable and resilient. Our approach creates value for our investors, as we target investments with the scope for stable and sustainable growth. Our portfolio companies work closely with the communities where they are based, to the benefit of all stakeholders. Infracapital is well positioned to deliver the 1 Infracapital Partners III is now closed to subscriptions significant investment required to help build the future. The founder-led team of experienced specialists has worked with more than 60 companies around Europe and has raised and managed over €9 billion of client capital across seven funds. Infracapital is part of M&G Plc, an international savings and investments business, managing money for around 4.5 million retail customers and more than 900 institutional clients in 39 offices worldwide. Total assets under management are £354.6 billion (as at 30 June 2025).
About GB Railfreight
GB Railfreight (GBRf) was founded in 1999 and is headquartered in London, United Kingdom. GBRf is one of the largest rail freight operators and fastest growing companies in the rail industry. The business transports goods for a wide range of customers across the country, goods that are critical to supporting the UK’s national supply chains.
GBRf’s workforce of c.1,400 staff is spread across the country. The business has won an array of awards in recent years at the National Rail Awards, Rail Staff Awards and Rail Business Awards positioning itself as the industry leading freight operating company.