Shanks issues first green bond; Drax biomass plant to power Thames Water; Business anger at recycling centre congestion; Fire at Preston household waste plant
Shanks issues first green bond
Shanks has issued the UK’s first green bond to retail investors in Belgium and Luxembourg to raise up to €150m (£107m).
A green bond is one which meets stringent criteria demonstrating that the funds will be used for environmentally beneficial purposes.
The new bonds will carry a gross coupon of 3.65% payable annually for a period of seven years from 16 June. The redemption on maturity, expected to be 16 June 2022, will be at 100% of the nominal amount of the bonds. Based on the issue price set at 101.875%, the annual gross yield is 3.345%.
The proceeds of the bonds will be used to finance the company’s program of investment in sustainable infrastructure and in part to repay the existing bond that matures in October 2015.
Drax biomass plant to power Thames Water
Specialist electricity supplier Haven Power, part of Drax Group, has signed a deal with Thames Water to supply their electricity requirements in a deal worth more than £500m over five years.
The option is available for two further five-year renewals which would increase the overall value of the contract to £1.5bn over 15 years.
The deal will source power from Drax’s biomass power plant in Yorkshire which the company boasts is the UK’s single largest supplier of renewable energy.
Once Thames Water starts drawing power, 100% of the company’s electricity needs will be met by renewal sources. The company currently sources 20% of its electricity through self-generated renewables such as solar, wind, hydro and biogas.
Business anger at recycling centre congestion
Businesses in Derby claim they have lost more than £100,000 because of queues at Raynesway Recycling Centre.
The city council says it has developed proposals to change the layout of the site and create queuing space within the site.
Asaf Afzal, the cabinet member for cohesion and inclusion at Derby City Council, said: “The changes are likely to cost approximately £65,000. It is expected, subject to the allocation of funding from the Local Transport Plan capital allocation, that the scheme will be delivered this year.”
Fire at Preston household waste plant
A fire involving a large amount of household waste has been tackled at Redscar Industrial Estate in Preston.
Two fire engines and three hose reels from Preston fire station attended the blaze on 26 May at the site run by Suez.
Crews were at the scene for about 80 minutes tackling the fire which destroyed approximately three tonnes of waste.
The cause is still under investigation. Nobody was injured and there is not believed to be any structural damage.