Financial close on GBP3.8bn super sewer project in the UK

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Financial close on GBP3.8bn super sewer project in the UK

Rubicon Capital Advisors has completed the GBP75 million (US$93.3 million) private placement financing for Thames Tideway Tunnel (Tideway) project in through its Bazalgette Tunnel Limited entity. 

Tideway is London’s new super sewer tunnel. It is a new part of the sewer network which will carry sewage and storm water discharges from the broader London sewerage system. The tunnel will be approximately 25km long, 7.2m in diameter and will run up to 65 meters below the River Thames. Starting in West London, the main tunnel will follow the route of the Thames to connect with the existing Lee Tunnel, with sewage being transferred to the Beckton Sewage Treatment Works in East London.

Preparatory work on the project began in 2015 and work is now underway at each of our 24 sites in London. Work is anticipated to be completed in 2024.

The GBP75 million (US$93.3 million) fixed-rate green bond transaction, issued through the Green Bond Framework, was priced with a yield of 2.418% and with a maturity in September 2041. To help the funding timetable for the construction of the tunnel, the notes were structured with a delayed drawdown of funds for the first two years.

Rubicon acted as placement agent and there was a sole institutional debt investor for this transaction.

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