Press Release

Macquarie Capital led consortium achieves financial close on Royal Hospital for Sick Children and Department of Clinical Neurosciences in Edinburgh

Edinburgh, 13 February 2015

The Royal Hospital for Sick Children (RHSC) and Department of Clinical Neurosciences (DCN) has reached financial close, with construction of the facility due to begin immediately. This is the first Acute Hospital to be delivered under the Scottish Non-Profit Distributing (NDP) model. Macquarie Capital has partnered with Brookfield Multiplex Europe and Bouygues Energies & Services, forming the IHS Lothian consortium, to finance and arrange delivery of this major new healthcare facility.

The public private partnership (PPP) project is being financed using a £185 million innovative financing facility structured across three different debt tranches including £150 million senior debt and £20 million senior subordinated debt, both to be provided pro-rata by the European Investment Bank and an institutional investor. Macquarie Capital is providing £15 million of junior debt.

Macquarie Capital acted as sole sponsor and exclusive financial advisor to IHS Lothian, running a competitive funding process that achieved more than 15 per cent savings through financing enhancements for the Scottish Futures Trust and the NHS Lothian Board. Brookfield Multiplex Europe is the Design and Build contractor and Bouygues Energies & Services is the Facility Management and Lifecycle provider. SMBCE acted as co-arranger and account bank.

Mark Bradshaw, Head of European PPPs, Macquarie Capital said: "The project demonstrates Macquarie Capital’s commitment to offering innovative and market leading funding solutions to clients. This is the first dual tranche senior debt and senior subordinated debt solution to Scotland’s NPD model. We are very proud to be part of the first NPD Acute Hospital in Scotland."

“The Royal Hospital for Sick Children and Department of Clinical Neurosciences follows a number of recent successful PPP/PFI projects where Macquarie Capital acted as lead sponsor and exclusive financial advisor. This includes the £600m Mersey Gateway Bridge, with over £125m of principal invested by Macquarie Capital, and the recently announced £100m Bus Depots Cluster 2 PPP in Belgium." 

Susan Goldsmith, Finance Director, NHS Lothian said: "We have worked closely with our partners IHS Lothian throughout this process and I would like to thank them for their efforts. We are delighted to have reached Financial Close on this significant project and we now look forward with anticipation and excitement to seeing the new facility taking shape over the coming years."

About Royal Hospital for Sick Children and Department of Clinical Neurosciences

The new NHS Lothian facility, which will adjoin the Royal Infirmary of Edinburgh, is anticipated to open in autumn 2017. The six storey building (including basement) will have a large atrium with a shop and café, a stunning skylight linking both hospital entrances, a helipad on the roof and a link building adjoining adult and paediatric emergency departments. The facility will have 233 beds and ten theatres.

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