Created: 22/06/2026Last Edit: 22/06/2026
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Item 1

Export Credit Agencies Urged to Extend Cape Town Discount to Rail Under the Luxembourg Rail Protocol

Export Credit Agencies (ECAs) from OECD States, at their annual CSO consultation meeting in Paris, were strongly urged to extend to railway rolling stock the risk premium discount of up to 10% they already provide in relation to aircraft finance where the Cape Town Convention (CTC) applies, as momentum grows behind the Luxembourg Rail Protocol as a tool to support more competitive financing for rail exports.

The issue was raised at the OECD in a presentation by Howard Rosen, Chairman of the Rail Working Group, on the role of the Luxembourg Rail Protocol in export credit policy.

The presentation also drew attention to an open letter from leading rolling stock manufacturer Stadler to OECD ECAs, pressing them to apply a risk premium discount to rail export finance where the CTC applies to rolling stock through the Luxembourg Rail Protocol. Stadler points out that “even a small change in the effective cost of finance can be the difference between whether or not we secure an order”, whilst stressing that the Luxembourg Rail Protocol provides additional legal security for creditors and underwriters.

In his intervention, Rosen also drew attention to the recent policy announcement by the Export Credit Insurance Corporation of South Africa (ECIC), which stated that where the Luxembourg Rail Protocol is in force in the debtor or lessee’s state, it will apply a discount of up to 20% to its risk premium when underwriting qualifying rolling stock financings, subject to local content requirements, compliance with the Protocol and other underwriting conditions. It was time, he said, to follow their example and offer a 20% discount also to rolling stock exporters from OECD states.

“How can it be”, said Rosen, “that ECAs state that they ‘encourage the use of stringent international standards and good international industry practices … contributing to sustainable development’ and then reduces its premiums on aircraft exports when the CTC applies but does not apply the same system for rolling stock?” “It makes no sense, taking into account that railways are a key tool in achieving sustainable development”, he added.

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Item 2

Contributor:

Export Credit Agencies Urged to Extend Cape Town Discount to Rail Under the Luxembourg Rail Protocol

Export Credit Agencies (ECAs) from OECD States, at their annual CSO consultation meeting in Paris, were strongly urged to extend to railway rolling stock the risk premium discount of up to 10% they already provide in relation to aircraft finance where the Cape Town Convention (CTC) applies, as momentum grows behind the Luxembourg Rail Protocol as a tool to support more competitive financing for rail exports.

The issue was raised at the OECD in a presentation by Howard Rosen, Chairman of the Rail Working Group, on the role of the Luxembourg Rail Protocol in export credit policy.

The presentation also drew attention to an open letter from leading rolling stock manufacturer Stadler to OECD ECAs, pressing them to apply a risk premium discount to rail export finance where the CTC applies to rolling stock through the Luxembourg Rail Protocol. Stadler points out that “even a small change in the effective cost of finance can be the difference between whether or not we secure an order”, whilst stressing that the Luxembourg Rail Protocol provides additional legal security for creditors and underwriters.

In his intervention, Rosen also drew attention to the recent policy announcement by the Export Credit Insurance Corporation of South Africa (ECIC), which stated that where the Luxembourg Rail Protocol is in force in the debtor or lessee’s state, it will apply a discount of up to 20% to its risk premium when underwriting qualifying rolling stock financings, subject to local content requirements, compliance with the Protocol and other underwriting conditions. It was time, he said, to follow their example and offer a 20% discount also to rolling stock exporters from OECD states.

“How can it be”, said Rosen, “that ECAs state that they ‘encourage the use of stringent international standards and good international industry practices … contributing to sustainable development’ and then reduces its premiums on aircraft exports when the CTC applies but does not apply the same system for rolling stock?” “It makes no sense, taking into account that railways are a key tool in achieving sustainable development”, he added.

Why it Matters


The call places rail finance directly within the wider debate on export credit pricing, legal certainty and sustainable infrastructure investment. If ECAs apply risk premium discounts to rolling stock under the Luxembourg Rail Protocol, rail exporters and buyers could benefit from more competitive financing terms, improving the viability of fleet procurement and leasing transactions.

For African rail markets, the issue is particularly relevant where rolling stock access remains a constraint on corridor development, freight reform and private sector participation. South Africa’s ECIC has already announced a discount of up to 20% for qualifying rolling stock financings where the Protocol is in force, creating a policy example that could influence wider ECA treatment of rail assets.


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ECAs Urged to Extend Cape Town Discount to Rail Finance
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Export Credit Agencies have been urged to apply risk premium discounts to railway rolling stock finance under the Luxembourg Rail Protocol, following aircraft finance practice under the Cape Town Convention.
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Luxembourg Rail Protocol, rolling stock finance, Cape Town Convention, rail export finance, railway rolling stock, export credit agencies, ECAs, OECD export credit agencies, Rail Working Group, Howard Rosen, Stadler rolling stock, ECIC South Africa, railway finance, rail finance discount, Cape Town discount, rail asset finance, rolling stock exports, railway investment, rail infrastructure finance, sustainable transport finance, African rail finance, rail leasing, rail creditors, rail underwriters, export credit insurance, OECD rail finance

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Luxembourg Rail Protocol rolling stock finance
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Item 2

https://www.railwaysafrica.com/news/export-credit-agencies-urged-to-extend-cape-town-discount-to-rail-under-the-luxembourg-rail-protocol

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Could rail finance receive the same treatment already applied to aircraft finance under the Cape Town Convention?
At the OECD’s annual CSO consultation meeting in Paris, Export Credit Agencies from OECD States were urged to extend to railway rolling stock the risk premium discount of up to 10% already provided in aircraft finance where the Cape Town Convention applies.
Howard Rosen, Chairman of the Rail Working Group, argued that the Luxembourg Rail Protocol provides additional legal security for creditors and underwriters and should support more competitive pricing for rail export finance.
The intervention also referenced South Africa’s Export Credit Insurance Corporation, which has announced that where the Luxembourg Rail Protocol is in force in the debtor or lessee’s state, it will apply a discount of up to 20% to its risk premium for qualifying rolling stock financings, subject to local content, Protocol compliance and other underwriting conditions.
For rail markets where rolling stock access remains a constraint, this is more than a technical export credit issue. It goes directly to the cost of capital, procurement viability and the ability to finance fleets for freight, passenger and corridor development.
Read more:
#RailwaysAfrica #LuxembourgRailProtocol #CapeTownConvention #RollingStockFinance #RailFinance #ExportCredit #ECAFinance #RailWorkingGroup #RailInvestment #RollingStock #RailwayFinance #RailInfrastructure #SustainableTransport #TransportFinance #AfricanRail #ECIC #OECD #RailLeasing

Facebook 1

Export Credit Agencies from OECD States have been urged to extend to railway rolling stock the risk premium discount already provided for aircraft finance where the Cape Town Convention applies.
The call was made at the OECD’s annual CSO consultation meeting in Paris by Howard Rosen, Chairman of the Rail Working Group, who highlighted the role of the Luxembourg Rail Protocol in improving legal security for creditors and underwriters.
The issue is particularly relevant for rolling stock finance, where even a small change in the cost of finance can influence whether fleet procurement moves ahead.
South Africa’s Export Credit Insurance Corporation has already announced a discount of up to 20% for qualifying rolling stock financings where the Luxembourg Rail Protocol is in force, subject to specific underwriting conditions.
Read more:
#RailwaysAfrica #LuxembourgRailProtocol #CapeTownConvention #RailFinance #RollingStockFinance #ExportCredit #RailInvestment #RollingStock #AfricanRail #RailInfrastructure #ECIC #OECD #SustainableTransport #RailLeasing

X 1

Export Credit Agencies have been urged to extend the Cape Town Convention risk premium discount to railway rolling stock under the Luxembourg Rail Protocol.
The issue goes directly to rail export finance, fleet procurement costs and legal certainty for creditors and underwriters.
Read more:
#RailwaysAfrica #LuxembourgRailProtocol #RailFinance #RollingStock #ExportCredit #CapeTownConvention #AfricanRail #RailInfrastructure

Item 2

Contributor:

Export Credit Agencies Urged to Extend Cape Town Discount to Rail Under the Luxembourg Rail Protocol

Export Credit Agencies (ECAs) from OECD States, at their annual CSO consultation meeting in Paris, were strongly urged to extend to railway rolling stock the risk premium discount of up to 10% they already provide in relation to aircraft finance where the Cape Town Convention (CTC) applies, as momentum grows behind the Luxembourg Rail Protocol as a tool to support more competitive financing for rail exports.

The issue was raised at the OECD in a presentation by Howard Rosen, Chairman of the Rail Working Group, on the role of the Luxembourg Rail Protocol in export credit policy.

The presentation also drew attention to an open letter from leading rolling stock manufacturer Stadler to OECD ECAs, pressing them to apply a risk premium discount to rail export finance where the CTC applies to rolling stock through the Luxembourg Rail Protocol. Stadler points out that “even a small change in the effective cost of finance can be the difference between whether or not we secure an order”, whilst stressing that the Luxembourg Rail Protocol provides additional legal security for creditors and underwriters.

In his intervention, Rosen also drew attention to the recent policy announcement by the Export Credit Insurance Corporation of South Africa (ECIC), which stated that where the Luxembourg Rail Protocol is in force in the debtor or lessee’s state, it will apply a discount of up to 20% to its risk premium when underwriting qualifying rolling stock financings, subject to local content requirements, compliance with the Protocol and other underwriting conditions. It was time, he said, to follow their example and offer a 20% discount also to rolling stock exporters from OECD states.

“How can it be”, said Rosen, “that ECAs state that they ‘encourage the use of stringent international standards and good international industry practices … contributing to sustainable development’ and then reduces its premiums on aircraft exports when the CTC applies but does not apply the same system for rolling stock?” “It makes no sense, taking into account that railways are a key tool in achieving sustainable development”, he added.

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Export Credit Agencies have been urged to extend the Cape Town Convention risk premium discount to railway rolling stock under the Luxembourg Rail Protocol.