Deutsche Bank has reached financial close on a EUR 178 million ( US$210 million ) structured trade and export finance transaction with the Serbian Ministry of Finance for the construction of a depot for the under construction Belgrade Metro Line 1.

The bank acted as sole mandated lead arranger, sole lender and agent with 95% export credit agency cover from Sinosure, the Chinese export credit agency. The 13 year loan has been classified as sustainable financing, supporting construction of depot for a fully electrified rail network.

In early 2021, the Ministry of Finance of the Republic of Serbia launched a request for proposal for financing of the construction of a depot for the Belgrade Metro Line 1 ( the project ), seeking competitive financing source.

The depot, located in the Makis area of the capital, is for storing the rolling stock, train carriages and locomotives that will operate in the Belgrade Metro Line 1, and would act as the central management system for traffic, dispatching and monitoring. The commercial contract of the project was awarded to Power Construction Corporation of China ( PowerChina ), and signed on 22 September 2023.

Serbia has demonstrated robust economic growth over the past decade. The capital  Belgrade has attracted a significant influx of workers from across the country and abroad, and the resulting rapid urbanisation and population increase have placed considerable strain on infrastructure, particularly in transportation.

The high-capacity, fully electrified rail network spans approximately 21 kilometres and 21 stations. The trains are being provided by Alstom of France.

“Deutsche Bank has a long-standing relationship with the Serbian Government on the ground,“ commented Gladys Choi, Deutsche Bank Head of Structured Trade & Export Finance Greater China and Korea. Entrusted by the government and PowerChina, our key Chinese exporter client, Deutsche Bank has shown strong commitment and support to the project. We have worked closely with all stakeholders to bring this important financing into successful closure, which is a key milestone for the construction of the Belgrade Metro Line 1.”