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Railhub Archive
2006-01-24 GNE-001


Unique funding deal for GNER improvements

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Unique funding deal for GNER improvements

24 January 2006
source GNER
type Press release

A UNIQUE financing facility has been arranged by Barclays Bank plc’s Transport and Logistics team, on behalf of East Coast train operator GNER, to fund £32.5 million of station improvement works and other investments due to start later this year on the flagship East Coast Main Line.

The finance package - the first of its kind in the UK rail industry - incorporates several ground-breaking features designed to meet the specific requirements of private, franchised train operators and their delivery of an important public service.

GNER’s Finance Director Shaun Mills said: “We set out some very demanding specifications, tailored specifically to meet the demands of GNER’s new franchise over its full term. These included flexible drawdown patterns, low interest charges driven off the structural aspects of the deal, and long availability and repayment periods.

“With Investec supporting GNER in discussions, Barclays was able to construct an innovative package which met all our requirements.”

Barclays’ Head of Transport and Logistics team Rob Riddleston added: “Barclays are delighted to have helped provide this innovative funding for GNER. The financing will help ensure substantial improvements are made to the East Coast main line.”

The £32.5m programme of station and other improvements is part of GNER’s new 10-year rail franchise. It includes:

o 900 extra car park spaces and an additional 400 covered cycle spaces at stations by end 2008;
o improved station signage and passenger information screens, including new screens away from the station in such places as Newcastle Central Station Metro, Doncaster’s new bus interchange and Peterborough’s Queensgate shopping centre;
o lifts at Newark and Grantham by the end of 2007 and 2008 respectively, and works to improve access at other stations;
o automatic ticket barriers at Peterborough, Durham and Newcastle by 2009;
o extra and improved seating at stations;
o refurbished lounges, travel centres and toilets;
o improved retail facilities;
o enhanced maintenance facilities including a new wheel lathe, bogie drop and weighbridge;
o four driver simulators;
o an extra 50 self-service fastticket machines to make buying a ticket easier.


Note to Editors:

GNER operates fast frequent services between London Kings Cross, the East Midlands, Yorkshire, the North East of England and Scotland, carrying almost 17 million passengers a year. The company manages 12 stations along the East Coast Main Line – Peterborough, Grantham, Newark, Retford, Doncaster, Wakefield Westgate, York, Darlington, Durham, Newcastle, Berwick-upon-Tweed and Dunbar. More than half of GNER’s revenue is returned to Government. GNER was awarded a new franchise from May 2005.

50 of the top 100 transport firms in the country either bank with Barclays, or do substantial business with them. Barclays provides a range of financing and banking services to the industry including working capital, asset, acquisition and leveraged finance.

Railhub Archive ::: 2006-01-24 GNE-001


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