Silvertown Tunnel PPP full funding details

25 November 2019 - 12:00 am UTC

The Riverlinx consortium has reached financial close on the Silvertown Tunnel PPP with GBP 1.2bn of debt raised across five tranches from 14 banks and institutional investors, a source close to the process said.

The consortium, comprising Macquarie Capital, Aberdeen Standard Investments, BAM PPP PGGM, Cintra and South Korea’s SK Group, announced on Monday (25 November) the signing of the 30-year DBFM with procuring authority Transport for London (TfL).

The debt package for the project, which involves building a 1.4km twin-bore tunnel under the River Thames in east London, has been provided by a large group of Asian lenders as well as European ones.

A source close to the transaction said that Credit Agricole, Instituto de Credito Oficial, Korea Development Bank, KEB Hana Bank, Norinchukin Bank and Shinshei Bank provided a 29-year term floating-rate GBP 450m term loan priced at 150-170bps. The loan was not equally split between the six lenders, the source added.

The Export-Import Bank of Korea (KEXIM) also provided a separate senior bank loan of GBP 175m on the same terms, according to the source. KEXIM has not funded a UK PPP in the past, according to Inframation data.

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