The financing for the upcoming M77 and Southern Glasgow Orbital project, which entails the extension and refurbishment of roadways in Southwest Scotland, will be completed using a whole business securitization. The deal, which will be roughly £150 million, will be lead-managed by Royal Bank of Canada and a monoline wrap is being provided by XL Capital, according to bankers familiar with the plans.
The deal will securitize payments from the Scottish Executive to the Connect consortium, which is responsible for the road's construction and maintenance. Similar deals to this one have been completed in the U.K. under the government's so-called Public Private Partnership initiative. Calls to RBC were not returned by press time. The deal should come to market within the next two months, says an official at RBC.