Royal Mail gets GBP1.4 billion ahead of IPO
Sky News reported last Tuesday without citing sources that Britain's Royal Mail had secured a hefty GBP1.4 billion in debt facilities. This was to support the 497 year old state owned mail and delivery service once it goes public.
The details of the privatization had been expected to be disclosed by the government of Britain. This was seen to occur before the stock markets open in London on Thursday, said Sky News on its website citing people close to the matter.
Royal Mail planned going public through an initial public offering as it aimed to raise funds to modernize its delivery networks. The initial public offering for Britain's Royal Mail was seen to be the biggest privatization deal in decades.
Sky stated a syndicate of banks had given Royal Mail two separate borrowing facilities. The two separate borrowing facilities were worth GBP800 million and GBP600 million. The funds would support Royal Mail in its first as a listed firm.