Citicorp Global Equipment Finance Group on Tuesday announced the closing of a $55 million cross-border U.S. leveraged lease for Tranz Rail Holdings Ltd., the largest railroad company in New Zealand.

The deal is a joint effort between Citigroup's Citicorp and Salomon Smith Barney units, Citicorp said.

Citicorp structured the leveraged lease, which is designed to allow Tranz Rail to finance the acquisition of a new rail, vehicle, and passenger ferry at a cost lower than that of an outright debt financing.

Salomon Smith Barney placed the debt in the U.S. private placement market.

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