Brussels, 03/12/2013 (Agence Europe) - The Greater Gabbard offshore transmission link has become the first UK-based infrastructure project to attract finance from institutional investors using the Project Bond Credit Enhancement initiative. Bonds with a value of £305 million have been issued to finance the new transmission link to connect the 140 turbine wind farm off the Suffolk coast with the UK mainland electricity network and have been successfully placed with a broad range of investors. Proceeds from the bond issue have been released, the bonds have started trading on the Irish Stock Exchange and technicalities concluded to allow financial close. The European Investment Bank has provided a £45.8 million guarantee, representing 15% of the bond issued, as a credit support under the Project Bond Credit Enhancement model that allows a one notch upgrade in the project's rating provided by Moody's (to A3).
The EUROPE 2020 Project Bond Initiative, a joint programme by the European Commission and the European Investment Bank is designed to stimulate capital market financing for infrastructure delivered under project finance structures. (OL/transl.fl)