Closing of security package for Stadler project in Lithuania

In 2023, LTG Link Link, the passenger transportation subsidiary of the state railway of Lithuania, and Stadler signed a contract for the delivery of a fleet of 15 x state-of-the-art FLIRT trains consisting of 9 x electrical trains for intercity long-distance railway services and 6 x regional battery-electric trains (BEMU). The BEMU will replace diesel trains that are now operated on non-electrified sections and thus will contribute to Lithuania’s path towards sustainable mobility. This is Stadler’s first contract in Lithuania and a major sales success in the Baltic region.

The security package structured and implemented by AIL for the benefit of Stadler comprises specific insurance cover from the SERV Swiss Export Risk Insurance covering any pre-shipment risk - risk that further production or delivery is impossible or unreasonable because a risk, such as a political event (war or warlike events, extraordinary measures of foreign states, force majeure event, etc.) has occurred – and payment risks (payment default of the customer) in connection with the project. The solution allows Stadler to mitigate the main political and commercial risks of the project over the entire delivery period until 2027.

The events of the war in Ukraine and the increasing risk for trade restrictions have once again made it clear that risks due to geopolitical developments in cross-border trade are diverse, can change or occur at any time and are difficult to predict, especially in the long term. It is therefore important that political risks are assessed properly as part of the project management process and managed efficiently.

This transaction demonstrates AIL’s expertise in the railway sector, and further strengthens the firm’s experience in the implementation and the performance of specific risk mitigation structures.