Irish Water agrees €100m loan facility with Ulster Bank
Irish Water agrees €100m loan facility with Ulster Bank
Irish Water said today that it has signed a €100m loan facility with Ulster Bank in the first in a series of loan agreements expected to be agreed with other domestic and international banks in the coming weeks.
The company said its long term funding plan is progressing well, and will enable it to finance the significant investment that is required in the water network.
“The ability to access private sector financing in order to invest in improving Ireland’s water infrastructure was a key reason for the establishment of Irish Water,” said Ervia group finance director, Michael O’Sullivan. “The funds we are borrowing will be used to address decades of underinvestment. The signing of this facility demonstrates confidence in the Irish Water strategy and its ability to borrow competitively from commercial banks. Lenders understand the long-term and sustainable utility model that we have adopted.”
The deal agreed with Ulster Bank is a committed unsecured facility that is available for up to two years. Irish Water said it plans to refinance the loan into a longer term revolving credit facility before the end of the year, along with other bilateral loan agreements that it expects to agree in the coming weeks.
In November, Irish Water also agreed a €50m uncommitted overdraft facility with Bank of Ireland, which, as with the Ulster Bank facility, is not covered by a Government guarantee.