Debt Funding
Latest News
Network Rail Infrastructure Finance PLC, rated Aaa/AAA/AAA, and guaranteed by a financial indemnity from the United Kingdom, has announced its intention, subject to market conditions, to issue the next tranche of its inflation-linked benchmark programme after the summer. It has mandated Barclays Capital, RBC CM, RBS and UBS Investment Bank to conduct a market consultation exercise to investigate investors' interest in a 40-year issue. This financing would be the third offering under Network Rail's inflation-linked programme.
Debt Capital Markets
Network Rail’s financing requirements are principally met by debt raised from the capital markets. The Debt Issuance Programme has within it two active debt issuing programmes:
- A £20,000,000,000 Multicurrency Note Programme – launched in October 2004 and its main financing vehicle
- A £4,000,000,000 Commercial Paper Programme.
Network Rail also has a £10,000,000,000 Medium Term Note Programme - although no further debt will be issued from this programme. All notes issued from this programme will mature before 31st March 2009.
In addition to public bond issues, Network Rail has issued bonds in response to reverse enquiries from investors.
All the money raised from the bonds issued by Network Rail Infrastructure Finance plc, after re-financing and service of debt, is on-lent to Network Rail Infrastructure Ltd
Overview of the debt-funding programme
| Issue | Network Rail Infrastructure Finance PLC (“NRIF”) |
| UK Government Support | This Programme benefits from direct and explicit support from the UK Government in the form of a Financial Indemnity from the Secretary of State for Transport, a Minister of the UK Government |
| Administrator | Network Rail Infrastructure Ltd |
| Programme Size | £20 billion |
| Ratings | S&P AAA / Moody’s Aaa / Fitch AAA (stable outlook) |
| Use of Proceeds | Funds will be used to finance the activities of NRIL and to refinance existing debt of the Network Rail group |
| Governing Law | English |
| Risk Weighting | 0% risk weighted with FSA |
| Maturity Date | Maximum maturity date is 2052 |
Dealers on the Multicurrency Note Programme
- UBS Limited
- Barclays Bank Plc
- Citigroup Global Markets Limited
- Dresdner Bank AG London Branch
- HSBC Bank Plc
- Merrill Lynch International
- Royal Bank Of Canada Europe Limited
- The Royal Bank Of Scotland Plc
Dealers on the Commercial Paper Programme
- Barclays Bank Plc
- Citigroup Global Markets Limited
- HSBC Bank Plc
- Merrill Lynch International
- Royal Bank Of Canada Europe Limited
- The Royal Bank Of Scotland Plc
- UBS Limited
Contacting the funding team
If you want more information on debt funding please send an email to the Funding Team at debtfunding@networkrail.co.uk.
Network Rail Infrastructure Finance Information Memorandum
If you would like to view the NR Infrastructure Finance Multicurrency Note Programme Information Memorandum, please click here