News & Analysis

Recovering lending markets boost £720m waste PPP

The financial close of the Cumbrian waste PPP project is further evidence that the UK bank lending market remains open for business after the close of the M25 deal last month. A three-bank syndicate provided £65m of debt for the £720 million transaction.

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Following the signing off of the largest PFI project in the market – the £6.2 billion (€7 billion; $9.9 billion) M25 scheme – last month, the UK PPP banking market seems to be back in business once more, with a waste project in the north of England reaching financial close last week.

UK-listed waste specialist Shanks has reached an agreement with Cumbria County Council to procure waste disposal facilities under a 25-year PPP contract.

The £720 million scheme was backed by a £65 million debt package provided by a syndicate of three banks, including Barclays, NIBC and SMBC.

Shanks’ chief executive Tom Drury welcomed the news, adding that PFI projects represent a “key component” of the group’s UK strategy.