Port of Tyne, a leading UK trust port, has obtained a £100 million ($130 million) refinancing package, marking a national first for a British major trust port.
Under this new financing package, the Port of Tyne will focus on developing green energy and smart logistics.
The government-owned UK Infrastructure Bank contributes a £50 million ($65 million) capital fund, while Pricoa Private Capital provides £45 million ($58 million) in long-dated loan notes.
Lloyds Bank will act as an agent and will issue a £5 million ($6 million) revolving credit line.
Notably, professional assistance was offered in the completion of this facility by Deloitte LLP’s Infrastructure Team, Ashurst LLP, and Pinsent Mason LLP.
This long-term credit agreement provides the Port of Tyne a structure to carry out its ambitious maritime 2050 goal, while also supporting the development of significant infrastructure projects to capitalise on new market opportunities.
The Port of Tyne and the entire North East area can sustainably support future green energy markets and secure long-term national energy security by adopting this new framework.
As a significant contributor of £700 million ($915 million) to the North East and UK economy, the Port of Tyne holds an integral position in various sectors.
It serves as the operations and maintenance base for Dogger Bank, the world’s biggest windfarm, and is the country’s second-largest vehicle exporting port.
Furthermore, the port supports a burgeoning clean energy sector and handles a varied variety of commodities such as containers, manufactured goods, retail products, renewables, and passenger operations.
Minister for Investment, Lord Johnson, said: “Regenerating the Port of Tyne will not only help the UK cement its role as a global leader in clean energy technology but will also be essential for levelling up the North East with highly skilled, green jobs and local economic growth.”
Lord Johnson further recognises the UK Infrastructure Bank’s contribution to the country’s net-zero ambitions, delivering innovative approaches for sustainable growth.
Mark Stoner, Chief Financial Officer at the Port of Tyne, stated: “This ground-breaking capital facility will help the Port of Tyne accelerate its intentional ambitions plans to support the rapidly expanding and critical green energy and automotive transition markets.
“It attracts international and home-based investment, area regeneration, highly skilled jobs, and the associated economic prosperity to the North East region and to the UK more widely.”