Port of Tyne secures £60 million refinancing deal from Lloyds Bank
The Port of Tyne has secured a £60m refinancing package from Lloyds Bank Commercial Banking to support its ambitious investment programme.
The five-year agreement, which comprises a £30m revolving credit facility and a £30m term loan, provides the port with capital to develop a number of major infrastructure projects.
This is the latest in a series of landmark North East infrastructure deals supported by Lloyds Bank, which includes leading the financing of the 299MW MGT Teesside power station.
The Port of Tyne, which contributes £690m to the North East economy, occupies a 250-hectare site on the River Tyne and is the second largest car exporting port in the UK. The port also handles a diverse range of cargoes including containers, commodities, manufactured and retail goods, renewables and offshore services.
As a key supporter of the government’s Maritime 2050 strategy, the business is set to play an important role in the UK’s long-term future as a maritime nation.
Mark Stoner, Chief Financial Officer at Port of Tyne, said: “The Port of Tyne is a major gateway to the North, thanks to its multimodal connectivity by sea, road and rail, which gives customers easy access to markets across the UK and around the world.
“The region’s economy is reliant on the success of the port, which is why we reinvest all profits back into the business. As a self-financing organisation, this approach is essential to future growth – for us and for the businesses we work within the North East and beyond.
“This partnership with Lloyds Bank will help us retain our position as one of the UK’s most innovative and efficient deep-sea ports.”
Alison Smith, Business Development Director in Large Corporates at Lloyds Bank, added: “The Port of Tyne operates a vital trading gateway to worldwide markets, making it a hugely important asset to the regional economy.
“We look forward to working closely with the Port of Tyne over the coming weeks, months and years. Supporting the North East’s infrastructure goes hand in hand with our commitment to helping Britain prosper.”
Lloyds Bank has committed to lending up to £700 million this year to firms across the North East, and up to £18billion across the UK. This is funding that can help businesses develop flexibility and ensure they’re equipped to make the most of the opportunities to come.