ORR strengthens Network Rail’s network licence ahead of debt issuance programme

9 November 2004
ORR/43/04

The Office of Rail Regulation has today strengthened Network Rail’s network licence ahead of its new debt issuance programme.

Network Rail’s licence was modified in July 2004 to add a new licence condition limiting the company’s borrowing, and to strengthen the financial ring-fencing provisions. These changes were necessary to ensure that Network Rail’s proposals for raising funds through a securitisation of future access charge revenue did not jeopardise the interests of customers and funders.

Network Rail has subsequently revised its financing plans and now proposes a debt issuance programme underpinned by Government and the Strategic Rail Authority. To take account of this, a further minor modification to the network licence is required to make the July 2004 licence modifications effective. This change has been made today, following a period of consultation.

Notes for editors

1. ORR’s proposed modification to Network Rail’s network licence was published in a document Network Rail’s long term debt issuance programme – A  statement by the Office of Rail Regulation, and a proposed network licence modification, ORR October 2004. The 28-day statutory consultation period closed on 29 October 2004.
2. A copy of the modified network licence is available from the ORR website at http://www.rail-reg.gov.uk/upload/pdf/netwrk_licence.pdf.pdf and from the ORR Librarian, Sue MacSwan, 1 Waterhouse Square, 138-142 Holborn, London EC1N 2TQ, tel: 020 7282 2001, fax: 020 7282 2045, e-mail: rail.library@orr.gsi.gov.uk.

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