Virgin Group aims to raise $900 million to fund Eurostar rival, FT reports

British billionaire Richard Branson’s Virgin Group aims to raise 700 million pounds ($900 million) to fund its bid to launch cross-channel rail services to compete with Eurostar, the Financial Times reported on Sunday.

Virgin Group intends to raise 300 million pounds in equity and 400 million pounds in debt and plans to be a cornerstone equity investor in the project, the company told the newspaper.

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

The company, which used to run intercity train services in Britain, plans to launch services connecting London with Paris and Brussels, and then to extend to Amsterdam in the future, the FT reported.

Virgin’s plans are for a high-frequency service that would be the first direct rival to Eurostar’s 30-year-old network and could launch as soon as 2029, the FT reported.

Eurostar told the FT it welcomed the development of rail services in Europe, adding 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.

($1 = 0.7740 pounds)