Macquarie advised M77/GSO road project achieves financial close in just five months

08 May 2003

LONDON -  Financial close was today achieved by the Connect consortium, advised by Macquarie Bank, on the £152m M77/GSO DBFO Road in Scotland - just five months after Connect was appointed preferred bidder for the project.

This follows the launch of a £152m public bond issue by Connect, the Balfour Beatty/Atkins consortium, on 30 April.

Macquarie, which now has the UK’s largest dedicated private sector PFI/PPP advisory team, has had recent successes in all major PPP sectors.

• Macquarie is adviser to Equion, recently named preferred bidder for the £200 million Newcastle Strategic Review Hospitals project involving major development at the Royal Victoria Infirmary and the Freeman Hospital in central Newcastle.
• Macquarie is also currently advising Equion as preferred bidder on the £70m schools project for Newham and Enfield councils, the first schools project involving joint procurement.

“We are seeing increasing development and sophistication of PPP solutions in the UK, as new approaches and model refinements are introduced to meet the needs of specific projects,” said Andrew Hunter, Head of Macquarie’s European Advisory business. 

“The year ahead will see enormous change and diversification in the PPP market, with the Foundation Hospital bill, completion of the first NHS LIFT schemes, development of a new model for schools and reassessment of PPP projects by the ratings agencies all having an impact,” Mr Hunter said. 

“Macquarie is a leader in PFI/PPP finance in major markets around the world including Canada, the US, Australia and Korea. However we are seeing the UK market really move ahead, with other countries starting to learn from the UK experience,” he said. 

Notes to Editors:
Macquarie Bank provides advisory services and debt and equity underwriting to corporate and government clients. Advisory services include project financing, private finance initiatives (PFI), public private partnerships (PPP), takeovers, mergers & acquisitions, corporate restructuring and other corporate strategic and financial advice. Macquarie has developed specialist expertise in the infrastructure sector, and was ranked No.2 Globally, No.1 for Americas and No.1 for Asia Pacific for advisory in 2002, in the Thomson Financial/Project Finance league tables.

The Macquarie Bank Group provides specialist investment, advisory and financial services in select markets around the world, with 5000 people in 18 countries. The Group comprises Macquarie Bank, Australia’s leading investment bank, and its worldwide affiliated entities. Macquarie has 200 staff based in London, with additional offices in Dublin, Frankfurt, Geneva, Munich and Vienna.

For further information please contact:

Andrew Hunter
Executive Director
Head of Advisory, Europe
Macquarie Bank
Tel: +44 (0)20 7065 2340

Alison Jefferis
Corporate Communications
Macquarie Bank
Tel: +44 (0)20 7065 2335
Mob: (0)79 1938 2958

Andrew Waterworth
Financial Dynamics
Tel: +44 (0)20 7269 7127
Mob: (0) 7771 740484