Transport for London is hoping to reduce the cost of borrowing originally incurred by the nationalised Tube PPP contractor Tube Lines.
TfL has bought back £1.3bn of Tube Line’s debt and is planning to reborrow the money at a lower interest rate, reducing the amount spent on servicing the debt.
Since buying Tube Lines in June 2010, TfL has been working to reduce costs associated with the firm.
TfL’s Managing Director of Finance, Steve Allen said: “Following the transfer of Tube Lines to TfL in June 2010, we inherited debt that was more expensive than TfL is able to secure.
“Thanks to our AA+ rating, which is the result of the critical nature of transport infrastructure we provide, sound financial management and delivery against our upgrade and improvement programmes, we are able to achieve more attractive rates than those available to Tube Lines.”