Associated British Ports said it is in negotiations with the European Investment Bank over the provision of two corporate loans worth around £125 million ($202 million).
ABP said the loans would help finance the upgrade of container terminals and marine access channels at the port of Southampton to accommodate large container ships and to build a berth and storage area for wind turbine manufacturing at the port of Hull.
The loans from the European Union’s long term lending arm will be used to repay an equivalent amount of ABP’s bank debt maturing in December 2014.
“This is in line with the ABP Group’s strategy for loans with shorter maturities to be refinanced with longer dated facilities,” the company said.
ABP, which is owned by a consortium including Goldman Sachs and Prudential insurance, is the UK’s largest port operator, handling 120 million tons of cargo a year at 21 ports, a quarter of the nation’s total seaborne trade.
Contact Bruce Barnard at email@example.com.