Frankfurt’s Helrom secures €32.9M green loan for sustainable decarbonisation of rail freight transport

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Frankfurt-based Helrom, a rail freight company, has secured €32.9M in green loan financing through a collaboration with Société Générale and DAL Deutsche Anlagen-Leasing.

Structured according to the Loan Market Association’s Green Loan Principles, the transaction uses an asset-based model with a seven-year term.

This deal builds on a previous agreement completed by the same parties in June 2023 and serves as a framework for Helrom’s future financing plans.

Gerald Wiencke, Head of Transportation & Logistics at DAL Deutsche Anlagen-Leasing, says, “With this customised financing solution, which we are implementing together with Deutsche Leasing Finance and Société Générale, we are continuing our successful collaboration with Helrom and supporting the company in its next growth phase.”

“The transaction is in line with our strategic goal of enabling the transition to low-emission logistics. We are pleased to support companies like Helrom with long-term, structured financing solutions in the decarbonization of supply chains.”

Thomas Losay, Head of Global Land Transportation at Société Générale, adds, “We are delighted to further support Helrom’s development with a second financing within two years. As a lender, agent, and green loan coordinator, Société Générale promotes sustainable growth and innovation in European freight transport, thereby accelerating the transition to a climate-friendly economy.”

Technology for efficient transport services

Helrom is a rail freight transportation and technology company. It helps move truck trailers by train instead of just by road. The company has created a train wagon that can carry any standard trailer without needing big loading stations, cranes, or extra equipment.

Here’s how it works: A truck brings a trailer to a small loading area next to the train track. The trailer is slid onto the train wagon from the side. Once the train reaches its destination, the trailer is unloaded in the same way, reconnected to a truck, and delivered to the final stop.

According to the company, this system makes it easier and faster to combine road and rail transport, helping to reduce traffic and emissions while keeping deliveries moving across Europe.

Helrom runs transport connections between Germany, Austria, Hungary, and Italy using the HELROM Trailer Rail for truck semitrailers. 

The company is funded by the Federal Ministry for Digital and Transport Affairs and is working toward CO2-neutral freight transport and net-zero transportation.

Video credit: Helrom (Vimeo)

Capital utilisation

The funds will boost Helrom’s transport capacity and advance its strategy to shift more freight to rail. The company mentions that it will purchase around 120 additional Helrom trailer wagons.

This investment aligns with the company’s goal of achieving CO2-neutral freight transport and follows its environmental, social, and governance (ESG) framework.

Dr. Matthias Herrmann, CFO of Helrom, says, “We are delighted to have agreed on further debt financing with our two long-standing financing partners, Société Générale and DAL. We are particularly proud that we were able to structure this loan as the first green loan in Helrom’s history.”

“We will use the funds to finance the Helrom trailer cars for the next six trains. Both partners fully support our ESG mission to decarbonise supply chains and have supported the topic of green financing from the very beginning.”

“We are grateful for this support and look forward to further establishing our sustainable transport concept with this financing,” adds Dr. Herrmann.

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Vishal Singh

Vishal Singh is a News Reporter and Social Media Marketing Lead at Silicon Canals. He covers developments in the European startup ecosystem and oversees the publication's social media presence. Before joining Silicon Canals, Vishal gained experience at the Indian digital media outlet Inc42, contributing to its growth with insightful content. Despite being a college dropout, his passion for writing has driven his career in journalism.

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