§ Mr. Teddy Taylorasked the Chancellor of the Exchequer what portion of the European investment bank's £1,000 million loan to Eurotunnel has been paid over to Eurotunnel; and what is the rate of interest and repayment arrangements in respect of the loan.
§ Mr. Brooke[holding answer 4 November 1987]None of the European investment bank's £1,000 million loan to Eurotunnel has yet been paid over. As explained in the last paragraph of the bank's press notice contained in my answer of 15 May 1987, at column390, the conclusion of contractual arrangements for the loan is subject, inter alia, to successful completion of the forthcoming equity issue.
The European investment bank loans will primarily be at fixed interest rates and for a range of maturities up to 25 years. The terms will reflect the prevailing market conditions.
§ Mr. Teddy Taylorasked the Chancellor of the Exchequer if he will list the joint stock banks which have agreed to guarantee the loan of £1,000 million given by the 899W European investment bank to Eurotunnel, and the amounts of the loan which each bank has agreed to guarantee, respectively.
§ Mr. Brooke[holding answer 4 November 1987]: The European investment bank is expected to seek guarantees from among the syndicate of banks formed to co-ordinate the financing of Eurotunnel. No choice has yet been made.
§ Mr. Teddy Taylorasked the Chancellor of the Exchequer what discussions he had with the joint stock banks regarding their agreement to guarantee the £1,000 million loan from the European investment bank to Eurotunnel; and what fees are being paid to the banks concerned for the guarantees they have given to Eurotunnel.
§ Mr. Brooke[holding answer 4 November 1987]My right hon. Friend the Chancellor of the Exchequer has had no discussions with the joint stock banks regarding guarantees for the European investment bank loan to Eurotunnel. Any fees involved would be a matter for negotiation between the syndicate banks concerned and Eurotunnel.
§ Mr. Teddy Taylorasked the Chancellor of the Exchequer what was the date of the meeting of the board of the European investment bank at which formal approval was given to the loan of £1,000 million to Eurotunnel, and if he or one of his Ministers took part in the board's proceedings.
§ Mr. Brooke[holding answer 4 November 1987]: As I informed the House on 15 May 1987, at column 390, the board of directors of the European investment bank agreed on 12 May 1987 to lend Eurotunnel the equivalent of £ 1 billion or 10 billion French francs. This was on the basis that conclusion of the necessary contractual arrangements would be subject to the conditions set out at the end of the press notice by the bank, which was incorporated in my earlier answer. Ministers are not members of the bank's board of directors and did not take part in the board's proceedings.