In a significant development, the Port of Tyne has successfully secured a £100 million refinancing package from the UK Infrastructure Bank, Pricoa Private Capital, and Lloyds Bank. This ten-year financing agreement reinforces the port's strategic commitment to green energy initiatives and smart logistics, marking a pivotal step forward.
Under this new arrangement, the Port of Tyne will benefit from a range of enhanced facilities. The Government-owned UK Infrastructure Bank has allocated a £50 million capital fund, empowering the port to fuel its green energy endeavors. In addition, Pricoa Private Capital has contributed £45 million in long-dated loan notes, further bolstering the port's financial position. Lloyds Bank, as a trusted agent, will continue its unwavering support and has provided a £5 million revolving credit facility. Notably, professional assistance from Deloitte LLP's Infrastructure Team, Ashurst LLP, and Pinsent Mason LLP ensured the smooth completion of this facility.
The long-term credit facility obtained by the Port of Tyne will lay a strong foundation for the realization of its ambitious Tyne 2050 strategy. Furthermore, it will provide crucial backing to develop major infrastructure projects, allowing the port to leverage emerging market opportunities effectively.
Worth highlighting is the fact that the Port of Tyne serves as the operations and maintenance base for Dogger Bank, the world's largest wind farm. This notable position further underscores the significance of the port's commitment to renewable energy.
Minister for Investment, Lord Johnson, expressed his enthusiasm for the project, stating, “Regenerating the Port of Tyne will not only solidify the UK's position as a global leader in clean energy technology but also play a vital role in leveling up the North East by creating high-skilled, green jobs and driving local economic growth.”
Mark Stoner, Chief Financial Officer at the Port of Tyne, hailed the refinancing package as a groundbreaking initiative. Stoner emphasized that the capital facility would propel the port's intentional plans to support the rapidly expanding green energy and automotive transition markets. He further highlighted its potential to attract both domestic and international investments, foster regional regeneration, generate highly skilled jobs, and bolster economic prosperity across the North East and the entire United Kingdom.
With this significant refinancing package, the Port of Tyne is poised to achieve its green energy ambitions and make substantial contributions to sustainable infrastructure projects, thereby solidifying its position as a key player in the evolving clean energy landscape.
