Forth Ports' £100m credit set to be renewed

Published on Friday 31 October 2008 19:52

FORTH Ports looks set to renew a £100 million credit facility after its chief executive yesterday said the firm was in talks with a number of banks.

Charles Hammond said the facility, which is due to expire next June, was one of several held by the Edinburgh-based ports and property group. He told The Scotsman: "Our overall facilities are up to 300m, although clearly our net debt is substantially less. We're talking to a wide range of banks and quite a number of them are interested in participating in the renewing or refinancing of that facility.

"I think it takes a little bit longer in the current climate but, for us, in our banking relationships, it's very much business as usual."

In yesterday's third-quarter trading update, Forth Ports said: "Trading within our ports division is in line with expectations and continues to show good levels of growth over last year."

The group said a fall in work from the construction industry had been offset by more work from the oil and gas, food and drink and agricultural sectors.

Forth Ports said that, because the deteriorating property market was affecting the value of its assets, it had decided to reduce and defer spending related to its property portfolio.

But the firm still expects to lodge its planning application for the regeneration of its land in Leith before the end of the year.

Hammond said: "The great thing in our property business is we do not have to sell anything – we're planning for the long term."