Chunnel is one step closer
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• The Channel tunnel project has taken a substantial step forward with the securing of £5 billion worth of bank loans and standby credit from 50 international banks.
Eurotunnel, the AngloFrench consortium building the tunnel, can now plan its £750 million international share issue in late November. The underwriting agreements, completed with five arranging banks, were due to be signed this week; the loans are repayable over 18 years.
Five British and five French banks are underwriting £1.23 billion, with German, Italian, Arab, Canadian, American, Swiss and Belgian banks also involved in the deal.
Japanese bankers are said to be interested in financing the project, which they believe will extend an already busy trade route, despite refusals by the British and French governments to guarantee any loans.