Primary Transactions

In over a decade of working in the PFI/PPP marketplace DWPF has been involved in numerous transactions across a wide range of sectors, advising numerous sponsors and financial investors. During this time, we have worked closely with over 20 major funding institutions, establishing a strong network of relationships within the financing community. Notably, DWPF acted as financial adviser on:

• The 1st PFI schools transaction to reach financial close in England, the 1st PFI schools deal to close in Scotland and also the 1st Schools deal to close in the Republic of Ireland
• The 1st PPP student accommodation estate transfer deal to close in England
• The 1st ambulatory care centre PFI project to close in England
• The 1st property based PFI transaction in the UK courts sector

Unsurprisingly, we have encountered a wide range of complex issues advising on transactions over this time, from affordability and financing constraints to structural, commercial and complex risk transfer issues, amongst other challenges.

In overcoming these hurdles not only have we sourced best financing terms from funding institutions, but DWPF has also been at the forefront of product innovation and development in the marketplace. This requires the ability to source, refine and structure financing packages to optimise value and also the initiative to move one step further in product development. Initiatives that DWPF has pioneered amongst others include the following:

DWPF was one of the first advisers to introduce inflation swaps to financial modelling in the PFI/PPP industry, providing clients with the opportunity of locking in additional value to their PFI bids, increasing competitiveness and therefore, the chance of reaching preferred bidder. Synthetic index-linked funding has also been used, again as a method of adding value, where project and macroeconomic conditions allow.

DWPF led the use of debt service reserve facilities within projects, and was among the earliest to adopt bridging facilities. Both techniques reducing overall project funding costs. DWPF was also among the first advisers to structure transactions to take advantage of composite trade tax treatment.

DWPF has been heavily involved in the Higher Education University sector, providing financial advice and structuring for the provision of new and refurbished student accommodation at a number of major UK universities. We have successfully developed an off balance sheet funding structure for university end users which transfers demand (and other) risks to the private sector participants, whilst maintaining competitive funding terms. This product has become a market leader in the university sector having been used to raise in excess of £1bn of financing in the market.

Again in the Higher Education sector DWPF has made use of charitable structures, in order to aid delivery of affordable student accommodation and academic buildings to universities.

In recognition of our innovative, flexible and common sense approach to transactions, DWPF has previously been voted best financial adviser in the prestigious Public Private Finance Awards.