Port operator DP World is sounding out banks for a loan backing the construction of the London Gateway.
Port operator DP World is sounding out banks for a loan backing the construction of the London Gateway, a project combining a deep sea container port with a logistics park on the Thames east of London, bankers said on Tuesday.
Initial talks are based on debt of approximately 1 billion pounds ($1.6 billion), split roughly into a 500 million syndicated loan with the rest to be covered by multilateral facilities, two bankers said.
Discussions are however at a very early stage, both sources added, noting most banks have not submitted proposals to credit committees and the structure is therefore subject to changes.
Banks are expected to submit their proposals by the end of the month, one of the bankers said.
The sponsor has issued some indications for the terms they think are appropriate and now banks need to think about what they think is appropriate,' a senior project finance banker said.
The tenor of the loan is expected to be in line with typically longer maturities for project finance loans and without a mini-perm feature.