Tideway, the company behind London’s new super sewer, is issuing bonds worth £100M to help fund the mega construction project.
Tideway has to find £3.1bn of the total cost of the Thames Tideway Tunnel, which is £4.2bn. The bonds are linked to the Retail Price Index and £50M will mature in 2048 and the remaining £50M in 2054. Listed on the London Stock Exchange, the bonds have deferred purchase dates of June 2020 and June 2021.
Last month, Tideway agreed a £700M loan from the European Investment Bank (EIB).
Tideway chief financial officer Mark Corben said: “This innovative, deferred-purchased bond issue marks Tideway’s debut on the capital markets. Combined with our loan recently agreed with the EIB, it will help secure the financing for our long-term investment programme, locked-in at 2016 rates. It is another key step forward in our work to clean up the River Thames.”
Construction on the tunnel will start later this year. It is scheduled for completion in 2024.