One of the first capital procurement schools projects in Scotland to be financed by an RPI indexed linked bond

Quayle Munro, the independent merchant bank, has advised Discovery Education consortium on its financial arrangements with Dundee City Council for a £90m schools PPP project.

Quayle Munro advised on the financial structuring of the Special Purpose Vehicle, and the form of bid submission and drafting.  In addition the project required detailed financial modelling in order to deliver an affordable project on behalf of the Council.

The deal has been closed as part of the Discovery Education consortium that includes Sir Robert McAlpine, Robertson Construction Tayside, Robertson Construction Central, Robertson Capital Projects and Robertson Facilities Management.  The partnership will see the delivery of six new primary schools and two new secondary schools in Dundee.

Phase one is expected to be completed by January 2008 and phase two by January 2009. Funding for the project was secured through an RPI indexed linked bond placed by Robertson Capital Projects and Sir Robert McAlpine.  The council will also have a small equity stake in the scheme.

Robertson Construction will deliver the majority of the design and build contract, with Sir Robert McAlpine constructing one secondary school. Robertson FM will provide a range of services throughout the 30-year project duration in partnership with Tayside Contracts - a public sector company owned by Dundee, Perth and Angus Councils.

Phase one construction work is due to commence immediately following advanced preparation work.

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Notes to Editors

Quayle Munro (www.quaylemunro.com) is an AIM-listed independent merchant bank, active in corporate finance (including equity and debt advisory), public finance, specialist fund management and investment on its own account.  The Group was co-founded in 1983 by its present Chairman, Ian Quayle Jones, and listed on the London Stock Exchange via an Introduction in 1993, transferring to AIM in 2003.