Network Rail RPI index-linked bond issue programme

ashm1

http://www.forbes.com/markets/feeds/afx/2007/04/25/afx3649134.html

Anyone know much about these rail bonds backed by UK government?

dealornodeal_3

Well Somebody has to pay for Notwork Rails Incompetence.

Ive spent half the time travelling by Bus, because they cant get the Signalling right. And that was suppose to be rectified in February.

Trust them with my money-no fear!:mad: :mad:

KTF

Live in the Portsmouth area do you then?

dealornodeal_3

KTF wrote: »

Live in the Portsmouth area do you then?

How did you guess that?

My train to Southampton was 25 mins late through Notwork Rails signalling Equipment at Hilsea failed again!!:mad: :mad:

Debt_Free_Chick

ashm1 wrote: »

http://www.forbes.com/markets/feeds/afx/2007/04/25/afx3649134.html

Anyone know much about these rail bonds backed by UK government?

Not this particular bond, but you are lending money to Network Rail, for which they will pay you interest, in some way linked to the RPI (the link doesn't specify how it's linked).

You are trusting Network Rail to pay you the index-linked interest and repay the amount you originally invest, whent he term is up.

However, if they default they claim that "NR said the bonds would be directly and unconditionally guaranteed by a financial indemnity from the UK government" which means that the Government would pay whatever NR owe you.

Government can always pay - if they don't have the money, they simply raise more taxes.

I think you need to look at the calculation of the interest and its link to the RPI and the terms of the "direct and unconditional indemnity" given by the Government.

This is a pure investment decision and nothing to do with the way that NR runs the railway. I might not be saying that without the Government indemnity, though

KTF

dealornodeal wrote: »

How did you guess that?

My train to Southampton was 25 mins late through Notwork Rails signalling Equipment at Hilsea failed again!!:mad: :mad:

Greetings from Hedge End

Yeah, I saw the signal failure on the SWT site. They are using the old stuff now and even that fails to work... I dont know if even Siemens know when the new stuff is going to work properly but their offices next to Fareham station still seem to be a hive of activity. At least the Basingstoke signalling was completed OK. I dont fancy a 2hr trip to London again anytime soon!

</derail>

Debt_Free_Chick

According to the Press Release

"The first tranche of the programme will be launched in the week commencing 30 April, subject to market conditions"

and

"The Financial Indemnity is a direct, unlimited, unconditional, irrevocable guarantee by the UK Government to investors "

You could contact Media Relations at NR and see when the prospectus (which will have all the contractual details) is available

dealornodeal_3

Debt_Free_Chick wrote: »

Not this particular bond, but you are lending money to Network Rail, for which they will pay you interest, in some way linked to the RPI (the link doesn't specify how it's linked).

You are trusting Network Rail to pay you the index-linked interest and repay the amount you originally invest, whent he term is up.

However, if they default they claim that "NR said the bonds would be directly and unconditionally guaranteed by a financial indemnity from the UK government" which means that the Government would pay whatever NR owe you.

Government can always pay - if they don't have the money, they simply raise more taxes.

I think you need to look at the calculation of the interest and its link to the RPI and the terms of the "direct and unconditional indemnity" given by the Government.

This is a pure investment decision and nothing to do with the way that NR runs the railway. I might not be saying that without the Government indemnity, though

What? Like the Goverment paid out to the people whom lost out o their Pensions!

Incidentally, I have noted that Notwork Rail are at present debating renewing all cab secure radios on the whole of the network running into £Billions going digital, so funny this bond for 30 years appears!:eek:

Chrismaths

What? Like the Goverment paid out to the people whom lost out o their Pensions!

The government never gave an indemnity on company pensions - the companies did. This is the point - a guarantee is only as good as the guarantor.

What the DWP did wrong was print a leaflet comparing personal pensions with occupational pensions - and said occupational ones were guaranteed (without saying who by). However, I wonder just how many of those were printed, how many were read by the people who complained, and how many based their decision on it.

With the PPF now funded by levies on other final salary schemes, the schemes are now prohibitively expensive for anyone to run. Oh except in the public sector where mug taxpayer picks up the tab.

If you include these liabilities in the government's debt figures, the national debt stands at over 100% of GBP, and anyone left working in the UK in 40 years will be paying enormous taxes to fund this government's promises.

/rant

Biggles

Any news on this? The announcement said 'in the week commencing 30 April', so there's only tomorrow left....

ManAtHome

Leaves on the line..?