The Port of Tyne announced it has secured a £100 million refinancing package with the UK Infrastructure Bank, Pricoa Private Capital and Lloyds Bank.
Pricoa Private Capital is a unit of US-based Prudential.
The package includes a £50 million capital fund provided by the government-owned UK Infrastructure Bank, £45 million of long-dated loan notes from Pricoa Private Capital, with Lloyds Bank providing a £5 million revolving credit facility.
Port of Tyne is the Operations and Maintenance (O&M) base to service Dogger Bank – the world’s largest windfarm – and is the second largest car exporting port in the UK.
“This 10 year financing arrangement is a national first for a British major trust port and builds upon the Port of Tyne’s strategic focus on green energy and smart logistics,” said the port.
“The deal demonstrates the underlying confidence investors have in the Port’s business strategy and market-leading position in established and emerging markets including offshore renewables and the automotive transition.
“The Port’s new facilities include a £50 million capital fund provided by the Government-owned UK Infrastructure Bank, £45 million of long-dated loan notes from Pricoa Private Capital, with Lloyds Bank continuing to support as an agent and providing a £5 million revolving credit facility.
“This facility was completed with professional support from Deloitte LLP’s Infrastructure Team, Ashurst LLP and Pinsent Mason LLP.
“This long-term credit facility will provide the Port of Tyne with a capital structure to continue to deliver its ambitious Tyne 2050 strategy while providing support to develop major infrastructure projects to capitalise on new market opportunities.
“The new structure will ensure the Port of Tyne – and the North East region – continues to support the green energy markets of the future and long-term national energy security.
“The Port of Tyne, which already contributes £700 million to the North East and UK economy, is home to the O&M base to service Dogger Bank – the world’s largest windfarm – is the second largest car exporting port in the country and supports a growing clean energy cluster.
“The Port also handles a diverse range of cargoes including containers, manufactured and retail goods, alongside renewables and passenger activities.”
Port of Tyne chief financial officer Mark Stoner said: “This ground-breaking capital facility will help the Port of Tyne accelerate its intentional ambitions plans to support the rapidly expanding and critical green energy and automotive transition markets, attracting international and home-based investment, area regeneration, highly skilled jobs and the associated economic prosperity to the North East region and to the UK more widely.”