Tunnel Boring Equipment Finance for a Utilities Contractor
£1,100,000 · 6 years · 7.25% fixed. A utilities contractor specialising in trenchless technology needed to acquire a micro-tunnelling system for a major water company contract.
The Client
Utilities contractor specialising in trenchless technology
The Challenge
A utilities contractor specialising in trenchless technology needed to acquire a micro-tunnelling system for a major water company contract. The equipment - comprising a micro-tunnel boring machine, slurry system, and associated tooling - cost £1.05m. Micro-tunnelling equipment is highly specialist and lenders unfamiliar with it often decline due to perceived residual value risk.
Our Solution
Doulton identified a specialist infrastructure plant finance lender with experience in trenchless technology equipment. An independent assessment from a trenchless technology consultant confirmed the equipment's market demand and residual value. The water company contract - a regulated utility - provided exceptional counterparty strength.
The Outcome
Equipment purchased and deployed on the water company contract. Contract value: £3.2m over two years. The micro-tunnelling system has subsequently been deployed on three further contracts, making it one of the most productive assets in the business. Key highlights: Trenchless technology specialist lender - residual value understood; Water company regulated utility - exceptional counterparty; £3.2m contract value - equipment now deployed on 3 further contracts.
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