Bond wrapped on Portsmouth Hospital PFI

Deal supports newly incorporated special purpose vehicle to continue project hit by Carillion collapse

A £327m bond underpinning the Queen Alexandra Hospital PFI project in Portsmouth has been wrapped by monoline insurer Assured Guaranty.

The index-linked secured bonds have been raised in the public market by QAH Finance, which is the newly incorporated special purpose company that will act as lender to the PFI contract.

"The successful placement of £327m of 100% index-linked wrapped bonds into the public markets attests to the significant demand from investors for long dated, guaranteed index-linked debt,” said Dominic Nathan, managing director of Assured Guaranty UK.

The Queen Alexandra Hospital PFI in Portsmouth has been operational for 11 years and is due to expire in December 2040. Its current sponsor is HICL Infrastructure.

In 2019, Engie took on the £1.3bn contract to continue providing facilities management services to the hospital under the PFI deal, following the collapse of Carillion, which had previously been delivering the contract.