The Falkland Islands Government (FIG) has secured £150million in investment for capital projects, including the new Port facility planned for 2027. The money was raised with the help of a team at Rothschild & Co, one of the world’s largest independent financial services groups.
An investment of £100million was secured from L&G and £50million from Aberdeen Group PLC. FIG has secured competitive terms, with fixed-rate interest and funds repayable in several tranches over the next 25 years, with the first repayment due in 2040. All sides to the deal hailed the investment as great news for the islanders.
Roger Spink, a member of the islands’ Legislative Assembly and Portfolio Holder for The Treasury, said: « I am delighted that we have secured this investment on competitive terms which reflects the confidence in our financial position and in our economy.
« The funding will enable FIG to deliver on a number of critical projects in the next few years, namely the replacement of FIPASS and the development of a new Power Station, which are both essential infrastructure for the Falkland Islands and support our continued economic growth. »
Steve Bolton, Head of Corporate Private Credit – UK and Europe at L&G added: “We’re really pleased to announce this funding to develop new infrastructure for the Falkland Islands Government.
« Institutional investment can be a key driver in supporting capital-intensive, long-term projects that can make a real difference both socially and economically.”
While Andrew Dennis, Head of Private Placements at Aberdeen, said: “We are absolutely delighted to support the Falkland Islands Government in advancing its capital programme over the coming years.
« Our ability to deploy long-term, patient capital marries perfectly with the Government’s growth plans and prudent fiscal performance”.
Initially, the new Port was expected to be built by the Harland & Wolff British shipbuilding company.
The company built the six linked barges that comprise the existing port facility over 40 years ago.
In March last year, following a competitive tendering process, Harland & Wolff was selected as the preferred bidder for the Falkland Islands Port Replacement Project (FIPASS).
Subject to agreeing on final contract pricing and concluding commercial negotiations, company directors said at the time that they believed the project could generate total revenues of up to £120million, with work expected to begin later in 2024.
However, following a detailed review process, the Falkland Islands Government decided to cease further contractual negotiations with Harland & Wolff regarding the lucrative project.
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