corporate_banner_en

Associated British Ports signs EIB loan to boost UK’s international trade and refinances bank debt early

Projects
Regions
European Union
Enlargement countries
Turkey
Iceland
Western Balkans
European Free Trade Association
Mediterranean Neighbourhood
FEMIP Overview
Supporting pan-Mediterranean initiatives
Financing & advice
FEMIP Loans
Private equity
Advisory & technical assistance
FEMIP Support Package
Procurement
How to apply
Trust Fund
Technical assistance
Private equity
Global dialogue
Partnerships
Organisation and staff
FEMIP Internship Programme
FAQ - FEMIP
EU Eastern Neighbours
Projects
Cooperation with other institutions and organisations
Financing facilities
Trust fund
Institutional framework
Applying for loans
Organisation and staff
Central Asia
Institutional framework
Cooperation with other institutions and organisations
Financing facilities
Technical assistance and grants
Applying for loans
Organisation and staff
Sub-Saharan Africa, Caribbean and Pacific
Funding and Financial Instruments
Applying for loans
Cooperation with partners
Investment Facility
Other initiatives
Activities
Asia and Latin America
Priorities
SMEs
Innovative options
Loans
Microfinance
EU partners for SMEs & mid-caps
Non-EU partners for SMEs & mid-caps
RDI support
Equity investment
Regional development
Climate Action
Urban & natural environment
Innovation
Skills and Jobs
Trans-European Networks
Transport
Energy
Project Cycle
Applying for a loan
Appraisal
Procurement
Monitoring
Projects to be Financed
Explanatory notes
Breakdown by region
European Union
EFTA countries
Enlargement Countries
Eastern Europe, Southern Caucasus and Russia
Mediterranean countries
Africa, Caribbean, Pacific countries + OCT
South Africa
Asia and Latin & Central America
Breakdown by sector
Projects Financed
Breakdown by region
European Union
EFTA countries
Enlargement Countries
Eastern Europe, Southern Caucasus and Russia
Mediterranean countries
Africa, Caribbean, Pacific countries + OCT
South Africa
Asia and Latin America
Breakdown by sector
Multi-criteria list
Operations Evaluation
Organisation and Programme
Programme
Methodology
Criteria
Rating scale
Process
Reports
Operations
Overview
Publications and reports
Cooperation and Coordination
ECG
European Financial Institutions
European Commission
Contacts

Associated British Ports signs EIB loan to boost UK’s international trade and refinances bank debt early

  •  Release date: 10 July 2013
  •  Reference: 2013-106-EN

Associated British Ports (ABP) announces today that its intermediate parent company, Associated British Ports Acquisitions UK Ltd (ABPA), has signed a £70m loan facility with the European Investment Bank.  The loan from Europe’s long-term lending institution will be used to fund part of the costs of the further development of the UK’s second largest container terminal at the Port of Southampton.

The investment is ABP’s response to the introduction of ultra large container ships by major shipping lines, principally operating on the key Far East to North Europe routes.   The project includes work to deepen and widen the channel to the container terminal,   upgrade berths, and install new gantry cranes that will be among the largest in the world. Southampton is already the UK’s most efficient container terminal and this enhancement will cement its leading role as a key international gateway.

The project, which is included in the UK Government’s National Infrastructure Plan, also promises significant benefits for the wider regional and national economy.  It is estimated that the Port of Southampton directly and indirectly supports around 15,000 jobs regionally and more than 21,000 jobs nationally.

“Increased global trade handled by larger ships built for the widened Panama canal provides significant opportunities for regional economic development in a new era of logistics.  The European Investment Bank is committed to supporting long-term investment in ports around the UK. EIB-backed investment by ABP in Southampton will not only improve container handling at the UK’s most efficient container terminal but also sustain thousands of jobs across southern England.” said Jonathan Taylor, European Investment Bank Vice President.

In addition, ABPA has completed the early refinancing of £850m of bank debt, originally due to be repaid in December 2014.  This was the shortest of three bank term loans arranged at the time of the group’s main refinancing in December 2011 when it established a new debt platform to facilitate future financing activity.  The other loans are due in December 2016 and December 2018.

As a result of this successful refinancing the group has greatly expanded its sources of finance, which now include:

  • public listed fixed rate bonds (denominated in both GBP and EUR);
  • public listed floating rate bonds;
  • US private placements;
  • long terms loans from institutional funders such as a UK pension fund, the European Investment Bank and an overseas export credit agency; and
  • debt from a syndicate of international banks.

Sebastian Bull, ABP Group Chief Financial Officer, said: “At the time of our inaugural bond issue in December 2011, we stated that we would refinance this £850m facility, ABP’s largest and shortest, within 18 months.  We have now achieved this.  We are delighted that we have done so by drawing interest from such a wide variety of sources of debt funding.  This is testament to the strength of the ABP business model and its leading position within UK infrastructure.

“We are also delighted that the EIB is supporting the continued development of the Port of Southampton, which is a leading gateway for the UK’s container trade and uniquely gives global reach for the UK cruise and car export trades.

“This project will help boost economic growth by supporting international trade and further improving UK businesses’ access to key global markets.”

Nathan Dunton, ABP Group Treasurer, said: “ABP’s new debt platform was established in 2011 in order to facilitate access to a variety of funding markets.  We are confident that the broad base of investors we have established through this process, who appreciate the predictable and robust cash flows that ABP generates, will serve us well when it comes to further finance requirements in the future.“

Erias Finance advised the management of ABP throughout this process.  Further information may be found on the Investor Relations section of the ABP website: http://www.abports.co.uk/Investor_Relations/.




 Print
 Pdf
Copyright © European Investment Bank 2014
The European Investment Bank is not responsible for the content of external internet sites.

http://www.eib.org/projects/press/2013/2013-106-associated-british-ports-signs-eib-loan-to-boost-uks-international-trade-and-refinances-bank-debt-early.htm