No raising for Downer

SYDNEY: Engineering and infrastructure company Downer EDI says it won't be raising capital to fund its production of new trains for Sydney's rail network.

Reliance Rail is the funding arm of a consortium including Downer that entered into a public private partnership (PPP) with RailCorp in 2006 for the manufacture and maintenance of 626 passenger train carriages for Sydney's suburban rail network.

Amid delays of delivery of the trains, Reliance Rail is facing pressure on its funding because of tighter access to debt markets.

Downer said in March its funding arrangements with Reliance Rail were on a non-recourse basis, and that it wasn't obliged to provide it with further equity.

Downer EDI yesterday reaffirmed that position: "The speculation of such an equity raising related to Reliance Rail is inaccurate and there is no such mandate in place between Downer and any investment bank."

- AAP