Macquarie Bank to acquire Sweden’s Arlanda Express Airport Rail Link for $76 million

12 October 2003

Macquarie Bank has today agreed to acquire the business of Sweden’s  A-Train AB and A-Train Invest AB (together A-Train) for a total consideration of $76 million (SEK400 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’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.   A-Train’s turnover in 2002 was $64 million (SEK 340 million).

The Arlanda Express was established in 1999 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.

The 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.

Macquarie Bank Chief Financial Officer, Mr Greg Ward said the Bank intends to sell the asset into the proposed new Macquarie European Infrastructure fund (MEIF) within 6-9 months of completion of the fund’s initial equity raising.

MEIF is intended to be a new wholesale fund  targeting investments in infrastructure and related assets located in European OECD countries. The A-Train is the second seed asset acquired for MEIF following the Bank’s recent announcement of  the  acquisition of the equity of leading UK water utility, South East Water PLC for $948 million on October 2, 2003.

Macquarie Bank will consolidate the A Train from completion date during the holding period, increasing total assets by approximately $700 million. During the expected holding period the impact on Macquarie’s profit as a result of consolidating A-Train, after taking account of depreciation, interest and amortisation, will be marginally negative. Mr Ward noted that the impact on Macquarie’s capital position was not significant.

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

For further information, please contact:

Greg Ward
Chief Financial Officer
Macquarie Bank Limited
Tel: (612) 8232 3543

Erica Sibree
Investor Relations
Macquarie Bank Limited
Tel: (612) 8232 5008

Matthew Russell
Public Relations
Macquarie Bank Limited
Tel: (612) 8232 4102
Mobile: (614) 1069 9532