Lloyds Bank provides £90m to develop key North East Infrastructure
Lloyds Bank has continued its commitment to developing key infrastructure projects in the North East after providing a £90m funding package to Middlesbrough-based PD Ports.
The package will be used by PD Ports to support an ongoing capital expenditure programme to expand and develop its ports and logistics assets. The programme will build upon the significant investment in Teesport in recent years.
PD Ports, one of the country’s largest port operators, owns and operates Teesport, which processed 500,000 TEUs (Twenty-Foot Equivalent Unit) in 2017 and handles approximately 4,100 vessels each year.
The partnership with PD Ports is the most recent in a series of landmark North East infrastructure deals supported by Lloyds Bank, which has included leading the £700m financing of the 299MW MGT Teesside biomass power station, situated on PD Ports’ land. Lloyds Bank has also provided a £15m support package for the Port of Blyth to fund improvements to its terminal infrastructure and the construction of new warehousing.
Alison Smith, business development director, Lloyds Bank, said: “This £90m funding package will enable PD Ports to future-proof its offering and ensure that it can continue to offer outstanding port and logistics services to businesses in the North East and across the United Kingdom.
“Thanks to the close co-operation of Dermot Russell and PD Ports’ CEO Frans Calje, we’ve been able to develop a detailed understanding of the business’ goals and draw on sector expertise from across our banking team, specifically our specialist Infrastructure & Project Finance team.
“Building strong relationships such as this is a key part of how we do business. As part of our commitment to helping Britain prosper, we’ll be continuing to support the development of the North East’s infrastructure, and I’m looking forward to working ever closer with the PD Ports team in the years to come.”
Dermot Russell, group chief financial officer, PD Ports, added: “PD Ports has a recognised expertise in providing innovative and customer focussed ports and logistics solutions to a wide range of different customers. Our continued investment in infrastructure has allowed us to help our customers increase the efficiency of their global supply chains, and has delivered increased volumes through our assets.
“We are delighted to have secured this facility from Lloyds Bank, which will allow us to continue our investment in regionally and nationally important infrastructure, and to enhance our capacity in our bulks and unitised platforms. In particular, we’ve benefitted from the vision of the Lloyds’ Infrastructure & Project Finance team, who have worked to tailor a financing structure appropriate for the next stage of PD Ports’ development, and we look forward to working closely with them in the next few years.”