BABCOCK & Brown announced on August 1 the establishment of a new company to develop CBRail, the European operating lease financing company it formed in September 2004 as a joint venture with Bank of Scotland Corporate Asset Finance.

The new company has a €390m long-term financing platform to enable the €330m acquisition of CBRail's existing rolling stock assets, and a €60m facility for future acquisitions, supported by a consortium of banks.

According to Ed Wilson of the Bank of Scotland, 'it was always envisaged that CBRail would look to a wider international banking market to syndicate its debt-raising exercise and this transaction is a fundamental step towards this.'

CBRail currently has 110 locos, 67 double-deck coaches, 50 multiple-units and 800 wagons on lease or under constr uction.