New York, Nov. 28 – Bazalgette Finance plc disclosed terms for its previously announced sale of £200 million of green bonds due 2042 linked to the consumer price index.
The bonds, priced at par, pay a coupon of 0.74% and will be repaid at par plus an amount based on the index. Calculations will be made monthly and will be the factor used to make the monthly adjustment will be the annual change in the consumer price index with a floor of zero and a cap of 3%, according to a term sheet.
The principal amount will amortize in £10 million semi-annual installments starting May 30, 2033.
Lloyds Bank was active bookrunner and RBC Capital Markets was passive bookrunner.
Proceeds will be used to finance or refinance spending on the Thames Tideway tunnel in London.
Bazalgette also announced on Nov. 22 that it priced £250 million of green bonds due 2027 with a 2.375% coupon at 98.841 to yield 2.492%.
Crédit Agricole CIB, Lloyds Bank, MUFG, RBC Capital Markets, Santander Global Corporate Banking and SMBC Nikko were managers for that sale.
London-based Bazalgette Finance, known as Tideway, is a company created to construct and operate the Thames Tideway tunnel in London.
| Issuer: | Bazalgette Finance plc
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| Issue: | Green bond
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| Amount: | £200 million
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| Maturity: | Nov. 30, 2042, amortizes by £10 million semi-annually starting May 30, 2022
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| Coupon: | 0.74%
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| Price: | Par
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| Redemption price: | Par plus factor based on year-over-year change consumer price index, calculated monthly, floor of 0%, cap of 3%
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| Bookrunners: | Lloyds Bank (active), RBC Capital Markets (passive)
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| Ratings: | Moody’s: Baa1
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| Fitch: BBB+
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| Announcement date: | Nov. 23
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| Settlement date: | Nov. 30
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| Distribution: | Regulation S
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