Treasury services

Tender description

In order to start the Battersea housing development we are required by Network Rail who own adjoining rail infrastructure to procure a performance bond. Without this in place the development will not be allowed to proceed. A requirement from Network Rail to start the development was to have a performance bond in place. This would be a legal contract between the Issuing Bank and Network Rail but payable by Peabody. Hence the precise wording of the contract would have to be acceptable to all 3 parties, in particular Network Rail. Network Rail have a very particular set of requirements which means that the subset of Issuing Banks who will accept such terms is limited, along with acceptance by Peabody. Having engaged with a number of Banks it became clear that only one Bank could deliver the service.