Advising Flix SE on financing aspects related to the order of 65 high-speed trains

Together with the general corporate financing completed in 2024, on which the firm also advised Flix SE, the total financing volume amounts to over EUR1 billion.

The long-term infrastructure financing supports Flix’s growth on rails across Europe. In this context, FlixTrain, a subsidiary of Flix SE, has ordered up to 65 new European high-speed trains. Talgo, a Spanish manufacturer of intercity, standard, and high-speed passenger trains, will provide the respective trainsets and certain maintenance services, while Siemens will provide the locomotives. The contract volume amounts up to EUR2.4bn, of which EUR1 bn is already firmly committed.

With this strategic move, FlixTrain is responding to the growing demand for fast and affordable rail travel. The company intends to use the new high-speed trains to leverage the enormous market potential in Germany and Europe. The high-speed rail market in Germany is expected to grow by 45% by 2030, compared to 2021 volume. Across Europe, the market potential is even greater – around EUR27bn in 2023 with an expected annual growth of 4—5%.¹ In 2024 alone, FlixTrain expanded its offering by 40%, and recorded significant passenger growth, building on the strong results of 2023.

The new FlixTrains will be European high-speed trains that travel at speeds of up to 230 km/h. They will feature barrier-free boarding—something not currently available on any long-distance train in Germany. The trains will be based on the Talgo 230 technical platform, with projects currently underway in Denmark and Germany. Both Flix and Talgo have devised project-specific enhancements to ensure high operational efficiency. In addition, traction will be provided by Siemens locomotives (Siemens Vectron) that have thoroughly proven their high reliability in operations over the past years. Additionally, the trains will be unique due to their European footprint and capable of operating across many European countries, built on a universal concept that enables rapid expansion.

Flix, launched in 2013 in Munich, is a leading global travel-tech company, offering long-distance bus and train travel solutions across more than 40 countries on four continents through its brands FlixBus, FlixTrain, Greyhound and Kâmil Koç. Leveraging an asset-light business model and an innovative technology platform, Flix swiftly achieved market leading positions for long-distance bus travel across Europe, North America, and Türkiye, and is rapidly expanding further into South America and Asia.

The A&O Shearman team comprised partners Thomas Neubaum (lead) and Wolfgang Melzer, senior associates Tom Haeseler and Dr. Tobias Wintermantel, as well as, for general financing matters, counsel Dr. Mark Hallett and associate Ann-Kathrin Ludwig (all banking and finance law, all Frankfurt).

Footnote

1.Source: OC&C Long-distance Travel Market Study 2023