Cutting These 10 Everyday Expenses in 2014 Will Save You $8,844
How to Perfectly Plan Your Divorce to Protect Your Assets
PNC Bank Review – Overview of PNC Bank Accounts, Loans and More
Here’s Why Bank of America Just Closed Your Credit Card Without Telling You
2014 Academy Award Statue Valued at Just Under $400
Why You Could Start Seeing Your Credit Score on Your Credit Card Bills
How to Host Your Academy Awards Viewing Party on a Budget
Warren Buffett Reveals His No. 1 Investment Strategy That Anyone Can Follow
Your ATM’s OS is a Decade Old: Here’s Why Banks Are Scrambling to Update It
What You Need to Know About Obama’s $3.9 Trillion 2015 Budget
Discover What a Discover Bank Online Savings Account Can Do For You
4 Tips to Cut Your Monthly Bank Fees
Here’s Why One Analyst Says Bank Stocks Are Going to Double
How Ben Bernanke Earned $250,000 in 40 Minutes
Visa and MasterCard Join Forces to Protect Your Card from Hackers
Drax's £75m loan marks first for guarantee scheme
The Treasury is to underpin a £75m loan for the Drax power station in North Yorkshire, marking the first project to be financed using the Government’s £40bn infrastructure guarantee scheme.

Drax used the guarantee to agree a cheaper debt deal with Friends Life, which is providing a £75m loan maturing in June 2018.

The loan will be used to part-finance a £700m project to convert three of the six plants at the 4000MW Drax plant to greener biomass fuels. The plant is Britain’s biggest power station, supplying 7pc of the UK’s electricity needs.

Other financing for the project will come from a £190m share placing last October, a £100m term loan with the Prudential, a £50m loan from the Green Investment Bank and Drax’s £400m revolving credit facility.

Danny Alexander, chief secretary to the Treasury, hailed the Friends Life deal as “the first project of many to be enabled by this radical, innovative approach”, adding the Government’s “door is open” for investors looking to finance infrastructure projects.

The guarantee is already earmarked for the £1bn extension of the Northern Line extension to Battersea but it could also form a component of the financing for the £4bn Thames Tideway super sewer, the £600m Mersey Gateway toll bridge and new nuclear power stations.

The Drax deal raised eyebrows in the City, however, because it effectively replaced a further £50m of loans from the state-backed Green Investment Bank.

Nick Prior, head of infrastructure at Deloitte, said: “The deal gives encouragement to developers of infrastructure projects. But there’s only a net £25m of new investment and it shows the Treasury guaranteee is more attractive than the Green Bank. It’s almost like you have different arms of Government competing to provide finance.”

Drax is understood to be borrowing at 4pc via the Friends Life deal versus 6pc from the Green Bank.

Geoffrey Spence, chief executive of the Treasury unit Infrastructure UK, said, however: “The guarantee scheme is not competing with the Green Bank. They are complementary.”

He said Drax had agreed at the time of its equity raising that it would cut its borrowing from the Green Bank from £100m to £50m.

Hey Ladies: Don’t Miss Out on the Broke Boyfriend Tax Exemption
3 Ways to Fix Your Finances in One Hour for Daylight Saving Time
IRS Reports This Year’s Average Tax Refund is $3,034
How to Start Saving Money for Your Baby’s College Education
How to Find Free Tax Preparation in Your City
IRS Wants to Pay You $25,000 for Saving Your Tax Return
5 Secrets Your Bank Doesn’t Want You to Know
How to Handle the 5 Most Awkward Money Situations
4 Tips to Cut Your Monthly Phone and Cable Bills
Stop Wasting Money Because You Won’t Admit You’re Old
Amazon Prime Price Hike: Is It Worth It?
10 Tips for Winning Your March Madness Bracket and Some Extra Cash
I Lost My W-2! What Should I Do?
4 Cheap, Fun Ways to Celebrate St. Patrick’s Day
What Four Leaf Clovers and Interest Rates Today Have in Common


Visit Statistics