Tideway has secured £300 million of funding from four US investors to support the construction of the Thames Tideway Tunnel.
The deal is the first of its kind for Tideway. It was made using the United States Private Placement (USPP)—a less expensive method for large businesses to raise capital compared to public offerings.
Mark Corben, chief financial officer of Tideway said the company is “delighted” that the “significant progress” made on London’s super sewer project over the last year “is recognised by investors in new markets”.
“This placement marks a significant step forward in de-risking the financing of our investment programme, as we now have secured approximately two thirds of our long-term financing needs,” he said.
The new funds will be available in September 2017 and will be used for “general corporate purposes”.
Tideway said the deal will strengthen its financial position, which as of 31 March 2017 comprised £316m in cash, £348m outstanding funds committed by shareholders, an undrawn £1 billion in retained cash flow, and £1.5bn of long-term financing.
Since the end of the financial year, in addition to the £300m USPP deal, Tideway has signed a £100m loan and a £125m bond agreement, both linked to RPI and with deferred drawing dates.