Continental Railways Limited (LCR), up to nine leading international
banks to submit proposals to arrange and manage Eurosterling bond
issues to finance government guaranteed debt for the Channel Tunnel
This decision follows an evaluation of the feedback received from the
markets. The bonds will be issued by a subsidiary of LCR and will be
unconditionally and irrevocably guaranteed by HM Government.
The issue of Government Guaranteed Bonds (GGBs) is governed by the
timetable for the CTRL project. To allow time to complete the
necessary conditions it is likely that the GGBs will be issued in
1. On 3 June 1998, HM Government agreed to guarantee up to£3.75bn
of debt, comprising a maximum of£2.65bn to be raised for Section I
(the link between the Channel Tunnel and the existing line to London
Waterloo) and a further maximum of£1.1bn for Section II (completion
of the link from North Kent to London St Pancras).
2. On 21 July, the DETR announced that J. Henry Schroder & Co. Limited (Schroders), the DETR's financial advisers for the CTRL, would be consulting the financial markets on the financing of up to£2.65bn of Government guaranteed debt.
On 10 September, Schroders gave presentations to key market
participants including Gilt Edged Market Makers, investment banks and
investors on the nature of the debt instrument and possible options
for the sale process.
3. The invitation to tender to submit offers for appointment as lead
manager for the Eurosterling bond issues is for funding required for
Section I of the project.