Law firm advises London boroughs on refinancing of streetlighting PFI deal

Law firm Browne Jacobson has advised Croydon Council and Lewisham Council on the refinancing of a multimillion-pound Private Finance Initiative (PFI) streetlighting project.

The agreement will see thousands of new streetlights installed and maintained across the boroughs.

Head of Energy & Infrastructure and banking partner at Browne Jacobson, Paul Hill, said the initial construction and operational risk that was factored into the original debt pricing has now been removed.

He added: "[It] was fantastic to have been able to support both local authorities in connection with the re-financing, particularly at a time when public sector funding is under so much scrutiny to the back-drop of the cost-of-living crisis."

Hill hailed the project as an example of "when a PFI model can enable the refinancing of private finance debt in a mutually beneficial way for both the public and private sectors, reflecting a de-risking of the original project profile".

Commenting on the deal, Jason Perry, Executive Mayor of Croydon, said the PFI would make the council more efficient without compromising services for residents. 

"The PFI initiative will mean a financial benefit for the council while keeping our streets well-lit at night, which is exactly what our residents are looking for," he said.

Cllr Amanda de Ryk, Lewisham Council Cabinet Member for Finance and Strategy, added: "In the current economic climate, it's really important that we try and find ways that alleviate the strain on the Council's budgets but don't compromise services to our residents.

“I am pleased that this Private Finance Initiative continues to provide improved infrastructure and street lighting in our borough and help to build safer streets, which we know is really important to our local communities."

Adam Carey