Tideway Sewer Bonds Set to Make Capital Markets Debut : The bonds for a new sewer project by Tideway have debuted on capital markets.

Tideway was the firm established to build the Thames Tideway Tunnel and now has listed bonds up to a total £100 million on the London Stock Exchange.

Preparatory work has already started in Central London and in relation to the retail price index, by 2048 £50 million will have matured, while the other £50 million will mature in 2054.

Purchase dates of June 2020 and June 2021 have been deferred by the company.

The firm is set to stump up £3.1 billion of the total £4.2 billion cost of the super sewage project, while Thames Water will contribute to the remaining cost.

Tideway secured a £700 million loan from the European Investment Bank (EIB) last month.

Mark Corben, Chief Financial Officer of Tideway, said that this deferred-purchased, innovative bond issue signifies the company’s capital markets debut.

Mr Corben added that this, along with the loan agreement with the EIB, will achieve financial security for the company’s long term investment programme, with 2015 rates locked in.

He also said that this latest project marks another significant forward leap in the firm’s attempts to clean up the River Thames.

The primary construction work on the Thames Tideway Tunnel is set to commence later in the year, with completion scheduled for 2024.

The £4.2 billion project (2011 prices) will be constructed under three primary contracts of BMB JV (£416 million West contract), FLO JV (£746 million Central contract) and CVB JV (£605 million East contract).

The main tunnel, which will stretch some 25km through the centre of London, will have a main inner diameter of 7.2 metres, will run roughly 66 metres underground (mainly following the course of the Thames) and a storage volume of 1.24 million cubic metres.

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