Ashurst advises banks on record-breaking PPP

Ashurst has won a mandate to advise the lead managers on the financing for the UK's largest-ever PPP project.

Partners Jan Sanders and Nick Avery, supported by associate David Cave, are acting for Deutsche Bank and Morgan Stanley as lead mangers of a £1.03bn inflation-linked bond. The 40-year bonds will go on sale in the next few weeks.

Proceeds from the issue will fund the redevelopment of three London hospitals: St Bartholomew's, the Royal London and the London Chest Hospital. St Bartholomew's will be turned into a specialist cancer and cardiac centre.

The bonds will be issued by Capital Hospitals, the consortium that was awarded the 42-year contract to run the project.

Capital Hospitals, which includes Skanska and Innisfree, has instructed Clifford Chance. Partner David Bickerton is advising on financing aspects, while senior lawyer Rebecca Ford is leading on the project side.

Allen & Overy, led by partner David Lee, has been instructed by St Bartholomew's and the London NHS Trust.

Ashurst is also acting for Ambac and Financial Security Assurance, the two monoline insurers that are guaranteeing the bonds, helping the issue to gain a triple-A rating from the ratings agencies.