The table below shows the financial structure of the deal. This was a large bond issue, towards the top end of the bond market. However, DKB estimated that the rate was still some 80 basis points, or some £3 million lower than could have been achieved through financing by bank debt. This led to the final Unitary Payment estimate of £489 million (Net Present Value).
The financial structure of the deal |
| Details of the GCHQ Bond issued on 22nd June 2000 | |||
The figure shows that 75 per cent of the deal was financed by a bond issue |
| The figure shows that 75 per cent of the deal was financed by a bond issue | |||
Finance source | (£ Millions) | Percentage of total |
| Required debt amount (£ Thousands) | 406,850 |
Senior debt (Bond issue) | 406.9 | 75.0 |
| Maximum bond facility (£ Thousands) | 406,850 |
Sponsor Equity and Subordinated debt | 45.2 | 8.3 |
| Final maturity (years) | 29 |
Land sales during construction | 3.2 | 0.6 |
| Bond margin | 1.8 per cent |
Interest income | 28.8 | 5.3 |
| Reference gilt (Treasury 06/07 2021) rate | 4.68 per cent |
Revenue during construction | 58.8 | 10.8 |
| Monoline insurance margin | 0.3 per cent |
Total | 542.8 | 100.0 |
| Fixed interest rate | 6.48 per cent |
Source: Financial model