Structuring on water

Dwr Cymru's L295 million UK tax lease transaction marked an industry first with its combination of new tax-based leases within an existing securitisation structure. And this was not just any securitisation, it was the landmark L2 billion Glas Cymru transaction put together by Citigroup SSSB and...

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Bibliographic Details
Published in:Asset Finance International 2003-03, p.1
Main Author: Bowman, Louise
Format: Article
Language:English
Subjects:
Agreements
Bond issues
Financing leases
Leases
Leasing
Lessors
Liens
Regulated industries
Securities markets
Securitization
Water utilities
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Summary:Dwr Cymru's L295 million UK tax lease transaction marked an industry first with its combination of new tax-based leases within an existing securitisation structure. And this was not just any securitisation, it was the landmark L2 billion Glas Cymru transaction put together by Citigroup SSSB and RBS Financial Markets in May 2001. The Glas securitisation was a groundbreaking solution to Welsh Water's problems at the time and fitting new UK tax leases into the structure has again generated a challenging and innovative transaction. Hyder directors Chris Jones and Nigel Annett therefore put together a non-equity solution for the water business, which would enable efficiency savings to be returned to customers rather than shareholders. This involved the establishment of a ring-fenced not-for-profit company to assume the assets and L1.85 billion debts of Dwr Cymru (Welsh Water) from Hyder for L1.
ISSN:1367-8086