It has been recently announced that Connect Plus, the project company that manages the M25 motorway around London, has priced a 21-year fixed-rate bond refinancing for £893 million (US$1.17 billion), to unwind interest rate swaps from 2009 and refinance part of a £1bn (US$1.31 billion) loan.

Shareholders Equitix and Dalmore are also expected to profit from having reduced debt service costs. 

Despite that, it is understood around £280 million (US$367.31 million) of extra debt may also have to be raised due to an adverse interest rate swap agreement linked to the project. The complex derivative involves the sponsors having to pay a high fixed rate of interest.