Reuters reports that banks have been asked to gauge the appetite for a £1.5 billion loan to back the planned privatisation of Royal Mail.
“A group of about 10 banks are looking at the financing, which is expected to consist of a revolving credit facility and a term loan, and will provide working capital to the firm before its initial public offering (IPO), two senior bankers said.”
In December, Royal Mail appointed Bank of America Merrill Lynch and Goldman Sachs to work alongside Barclays as its financial advisers. UBS has been advising the government.
The flotation, which is expected to value the state-owned business between
£2-3 billion, could begin as early as September.
Source: Royal Mail