Virgin Group to raise $900 million for rail service bid, company says

Virgin Group aims to raise $900M for cross-channel rail venture

Robert Besser
15 Mar 2025, 23:59 GMT+10

Virgin Group to raise $900 million for rail service bid, company says

Virgin Group is seeking to raise $900 million to fund its plan to launch cross-channel rail services, positioning itself as a direct competitor to Eurostar
The company confirmed over the weekend that it aims to secure 700 million pounds through a combination of equity and debt financing
The British company, founded by billionaire Richard Branson, plans to introduce high-frequency rail services connecting London with Paris and Brussels, with future extensions to Amsterdam

LONDON, U.K.: Virgin Group is seeking to raise $900 million to fund its plan to launch cross-channel rail services, positioning itself as a direct competitor to Eurostar.

The company has confirmed that it aims to secure 700 million pounds through a combination of equity and debt financing.

The British company, founded by billionaire Richard Branson, plans to introduce high-frequency rail services connecting London with Paris and Brussels, with future extensions to Amsterdam. This would mark the first direct challenge to Eurostar's 30-year-old network and could launch as early as 2029.

Virgin intends to raise 300 million pounds in equity and 400 million pounds in debt, confirming a Financial Times report. The company also plans to be a cornerstone equity investor in the project.

"The cross-Channel route is ripe for change and would benefit from competition," a Virgin spokesperson said in an emailed statement.

"While Virgin is not committing to launching a service just yet, we are seeking investment from like-minded partners to invest alongside Virgin, and we are delighted with the progress made so far."

Eurostar, responding to the Financial Times, welcomed new developments in European rail services and noted that "competition in the high-speed rail sector is another example of the growing demand for rail transport in Europe."

Eurostar did not immediately respond to a Reuters request for comment.