Macquarie Bank to acquire Sweden’s Arlanda Express Airport Rail Link

10 October 2003

LONDON - Macquarie Bank has today signed a Sale and Purchase Agreement to acquire 100 per cent of the shares in A-Train AB and A-Train Invest AB (together A-Train) for a total consideration of SEK 400 million (€45 million), from a consortium comprising NCC, Vattenfall, Alstom and Mowlem. A-Train is the operator of the Arlanda Express, a high speed dedicated rail link between Stockholm city centre and Arlanda Airport.

The Arlanda Express links Stockholm’s main international and domestic airport at Arlanda and Stockholm Central Station, a distance of 42kms by road. The high speed service travels at up to 200km per hour, providing a journey time of 20 minutes each way. Six trains run per hour during peak hours and Arlanda Express operates 19 hours per day. In 2002, A-Train’s turnover was SEK 340 million and Arlanda Express carried 2.4 million passengers.

“The Arlanda Express provides a valuable service to the city of Stockholm, offering travellers further choice and providing a quick and convenient journey to and from the airport,” said Mr Jim Craig, Managing Director of the Macquarie European Infrastructure Fund.

“It’s business as usual for Arlanda Express staff and customers. We look forward to working with the A-Train management team as they continue to provide a quality service to passengers to and from Arlanda,” he said.

The Arlanda Express was established to improve transport links to the airport and reduce anticipated levels of traffic congestion arising from air traffic and associated passengers. It operates under a Swedish Government concession that extends to 2040.

Completion of the transaction is conditional upon approval of the Swedish Government’s holding company A-Banan Projekt AB and A-Train’s lenders.

It is intended that A-Train will be transferred from Macquarie Bank to the recently announced Macquarie European Infrastructure Fund, on completion of the Fund’s initial equity raising which is expected to be within six to nine months. The Macquarie European Infrastructure Fund is a new wholesale vehicle that will target investments in infrastructure and related assets located in European OECD countries.

“Arlanda Express is an attractive asset that offers sustainable and predictable cashflows and potential for revenue growth through increases in both market size and market share, and matches the Fund’s investment criteria,“ Mr Craig said.

The European infrastructure sector is generating a strong and growing pipeline of attractive opportunities. The Fund will benefit from Macquarie’s position as a global leader in the infrastructure finance sector, which provides us with a unique ability to access outstanding investment opportunities,” he said.

A-Train is the second seed asset acquired for the Macquarie European Infrastructure Fund, following Macquarie’s recent announcement of the acquisition of leading UK utility South East Water.

NOTES TO EDITORS:

The Macquarie Bank Group

Macquarie is a global leader in infrastructure acquisition, funding and management, and manages almost €9.5 billion of funds invested in infrastructure assets and businesses around the world including toll roads, airports, communications, water, rail and power.

The Macquarie Bank Group provides specialist investment, advisory and financial services in select markets around the world, with 5000 people in 18 countries. The Group consists of Macquarie Bank Limited, the leading Australian investment bank, and its worldwide affiliates. Macquarie Bank has a market capitalisation of €4 billion.

Macquarie’s European regional base is London where we have over 200 people, with additional offices in Dublin, Frankfurt, Geneva, Munich and Vienna.

A-Train

A-Train is Sweden’s first privately financed infrastructure project and operates Arlanda Express, the express rail service between Stockholm Central Station and Stockholm Arlanda Airport. A-Train, whose traffic operations were launched in November 1999, currently has about 180 employees.

A-Train is the first company to satisfy the new European environmental requirements in accordance with the Good Environmental Choice label.

For further information, please contact:

Jim Craig
Managing Director
Macquarie European Infrastructure Fund
Tel: +44 (0) 20 7810 790 774

Andrew Waterworth
Financial Dynamics
Tel: +44 (0) 20 7269 7127
Mobile: +44 (0)777 174 0484