Re Contract

RNS Number : 5810T

Carillion PLC

07 October 2014

 

7 October 2014

Chancellor of the Exchequer announces Carillion will be the first company to benefit from UK Export Finance's new Direct Lending Facility    

The Chancellor of the Exchequer, George Osborne, has announced that Carillion will be the first company to benefit from the new Direct Lending Facility, which is being provided by UK Export Finance (UKEF) to boost UK exports.

Under the Direct Lending Facility, HM Treasury has made £3 billion available to support export finance on a first come, first served, basis that enables UKEF to provide funding at the Commercial Interest Reference Rate with partner banks arranging loans.       

Carillion already has a strong relationship with UKEF, having secured a number of contracts in the Middle East and North Africa with the support of UKEF's Standard Buyer Credit Facility.  The latest contract to be secured with the support of UKEF is a £75 million contract to deliver Phase 1 of the Dubai World Trade Centre District development for the Dubai World Trade Centre, using UKEF's new Direct Lending Facility with the loan being arranged by Deutsche Bank. 

The contract involves the construction of a 146,000 square metre development between the current Dubai International Convention and Exhibition Centre and Emirates Towers in the heart of the city's Central Business District that will include an eight storey office building and a 588-room business and tourism hotel.  The development will be designed to best-in-class quality standards and Phase 1 will include international Grade A quality offices, which have achieved LEED® Gold pre-certification from the US Green Building Council - the industry benchmark for green building performance covering design, construction, operations and maintenance.  The technology solutions and infrastructure being planned align with the Dubai Government's Smart City strategic agenda.

Commenting, Chancellor of the Exchequer, George Osborne said: "Helping British companies to access global markets is a key part of our long term economic plan. So I'm delighted to announce the first deal supported by UK Export Finance's Direct Lending Facility, along with the twenty financial institutions that are going to help us deliver the loans.

"It is great to see successful companies like Carillion winning contracts around the world. This deal, the first in a pipeline of many will help us reverse the age old trend of not exporting enough, boosting growth and creating jobs."

Carillion Chief Executive, Richard Howson, added: "We have built a strong relationship with UKEF, which is helping companies like Carillion to use its sector-leading expertise and reputation for quality, reliability and safety to win major contracts.  The new Direct Lending Facility is an exciting development, which will further enhance our ability to use Carillion's world-class skills to compete and win contracts in our international markets."     

Notes to Editors - Carillion

Carillion is a leading integrated support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities.  The Group had annual revenue in 2013 of some £4.1 billion, employs around 40,000 people and operates across the UK, in the Middle East and Canada. 

The Group has four business segments.

Support services - this includes facilities management, facilities services, energy services, utility services, road maintenance, rail services and consultancy services.

Public Private Partnership (PPP) projects - this includes investing activities in PPP projects for Government buildings and infrastructure, mainly in the Defence, Health, Education, Transport and Secure accommodation sectors.

Middle East construction services - this includes building and civil engineering activities in the Middle East.

Construction services (excluding the Middle East) - this includes building, civil engineering and developments activities in the UK and construction activities in Canada.

This and other Carillion news releases can be found at www.carillionplc.com

For more information

John Denning, Director Group Corporate Affairs, Carillion plc                      + 44 (0) 1902 316426

Finsbury

James Murgatroyd or Gordon Simpson                                                    [phone]

 

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