ABP in discussions with EIB over loans totaling £125 million to help finance development projects in Hull and Southampton
Associated British Ports (ABP) is in discussions with the European Investment Bank (EIB) over the provision of two loans totaling £125 million to help finance development projects in the Port of Hull and Southampton.
The loans will be used in the upgrade of both the container berths and the marine access channel in Southampton to allow the safe transit of larger ocean carriers into the port, and the redevelopment of the Alexandra Dock in the Port of Hull.
The redevelopment of Alexandra Dock will see the creation of a new offshore wind turbine manufacturing facility, to be built by Siemens on ABP land, will also include the build of riverside berthing and storage areas for turbine components. ABP and Siemens secured planning permission for the development, to be known as Green Port Hull, earlier this year. ABP will invest an estimated £115 million into the project, which will be backed by a long-term contract by Munich–based Siemens. The construction of the new facility is scheduled to start in the second quarter of next year.
ABP’s parent company ABP Acquisitions UK (ABPA) said that the EIB loan, if concluded, will be applied to repay an equivalent amount of ABPA’s bank debt maturing in December 2014. ABPA added that this is in line with the Group’s strategy for loans with shorter maturities to be refinanced with longer dated facilities.
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