EllisDon to issue bonds to finance US$320 million hospital P3 in British Columbia
This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.
EllisDon Capital Inc. is preparing to issue two amortizing senior secured bonds to finance the CAD417 million (US$319.5 million) Royal Inland Hospital Expansion Project. Totaling approximately CAD154.9 million (US$118.7 million), the bonds have been assigned a first-time A3 rating by Moody's Investors Service.
The project involves the design, construction, financing and maintenance of a new Patient Care Tower at the Royal Inland Hospital in Kamloops, British Columbia, located in south-west Canada. It was awarded to EllisDon by the Interior Health Authority in September.
The nine-storey tower is expected to include three floors of inpatient beds dedicated to mental health and medical/surgical units; a new surgical suite; a perinatal centre and private labour and delivery rooms, obstetrics and postpartum beds; and a neonatal intensive care unit.
The project will also entail significant renovations to the existing emergency department, pediatrics, post-anaesthetic recovery unit and morgue of the hospital. The Target Service Commencement Date of the tower is 15 February 2022, while the renovations are planned to be completed in 2024.
As well as equity sponsor, affiliates of EllisDon Inc. are also participating in the project as construction contractor and service provider. The latter will assume maintenance and rehabilitation obligations for a 30-year period.
EllisDon has been successful in winning similar hospital PPP projects across Canada, and demonstrated a preference for capital market financing to raise the necessary funds for their development. Earlier this year, the company issued two amortizing senior secured bonds totaling approximately CAD219.1 million (US$167.9 million) to finance the redevelopment of West Park Healthcare Centre in Toronto, achieving financial close of the P3 project in August.
In February, the company was also awarded and achieved financial close of the CAD411 million (US$314.9 million) Michael Garron Hospital P3 project, which involves the construction of a new eight-story patient care tower and is also located in Toronto.
Country news
-
-
October 09, 2018
Canadian province to tender US$1.5 billion hospital P3
The Government of Nova Scotia, a province in eastern Canada, has announced that the redevelopment of the QEII Health Sciences Centre, known as the QEII New Generation project, will be partly undertaken through a public-private partnership (P3). The total cost of the project is estimated to be CAD2 billion (US$1.54 billion).
Read more -
October 01, 2018
US$3 billion Canada-USA bridge PPP reaches financial close
Bridging North America (BNA), a consortium comprised of Fluor, Aecon and ACS Group, through its affiliates ACS Infrastructure (Iridium) and Dragados, has closed financing for the Gordie Howe International Bridge project, valued at over CAD3.8 billion (US$2.94 billion).
Read more -
September 11, 2018
RFQ issued for US$1.25 billion light rail PPP in Canada
Translink, the regional transport agency for the Vancouver metropolitan area in British Columbia, south-west Canada, has published a Request for Qualifications (RFQ) for the Surrey-Newton-Guildford Light Rail Transit (LRT) project, which has a total estimated investment of CAD1.65 billion (US$1.25 billion).
Read more -
August 31, 2018
US$350 million bonds to be issued to finance US$3.5 billion Canada-USA bridge PPP
Bridging North America (BNA), a consortium consisting of ACS Group, Aecon Group and Fluor Corporation, is issuing CAD454.5 million (US$350.9 million) in medium to long-term bonds to finance the construction of the Gordie Howe International Bridge. BNA was awarded a contract to design, build, finance, operate and maintain the bridge in June.
Read more -
August 24, 2018
Canada Infrastructure Bank agrees US$1 billion loan for light rail project in Montreal
Canada Infrastructure Bank (CIB) has concluded a business agreement with CDPQ Infra, a wholly owned subsidiary of Caisse de dépôt et placement du Québec, regarding its investment in the Réseau express métropolitain project (REM) in Montréal, which will amount to CAD1.28 billion (US$980.5 million).
Read more
