Network Rail interim funding - Medium Term Note (MTN) programme

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From the Minister of State

Richard Bowker Esq.
Chairman
Strategic Rail Authority
55 Victoria Street
London
SW1H 0EU

19 February 2004

Dear Richard,

Network Rail Interim Funding - Medium Term Note (MTN) Programme

In the Secretary of State's letters of 21 June 2002 and 25 June 2003, he issued directions under section 207(5) of the Transport Act 2000 (the Act) in relation to the SRA's support for the Network Rail group's funding arrangements.

I have been advised that an MTN programme is proposed to provide the Network Rail group with working capital and to refinance existing short term facilities until Network Rail's long term debt issuance programme is launched and established. The SRA has been requested to provide certain support for the MTN programme, and I am writing to give the SRA, subject to section 207(4) of the Act, the following directions under section 207(5) of the Act.

On the basis that the Government is content for the SRA to enter into the documents relating to the Network Rail MTN programme and facilities to which the SRA is a party, the SRA is to enter into the following agreements:

  1. The MTN Support Facility between (1) the SRA and (2) Network Rail MTN Finance PLC.
  2. The SRA Direct Agreement between (1) the SRA, (2) Network Rail MTN Finance PLC, (3) HSBC Trustee (C.I.) Limited and (4) HSBC Bank PLC.
  3. Side Agreement between (1) the SRA, (2) Network Rail MTN Finance PLC, (3) Network Rail Infrastructure Limited, (4) Network Rail HoldCo Limited and (5) Network Rail Limited.
  4. Letter from the SRA addressed to Merrill Lynch International and the dealers from time to time under the MTN Programme.

Kim Howells