Assured Guaranty Ltd.'s European trading platform, Assured Guaranty (Europe) Plc, issued a financial guarantee benefiting the holders of bonds issued by Channel Link Enterprises Finance Plc as part of the Eurotunnel debt financing.
The guarantee will provide debt service payment liquidity to Channel Link Enterprises, which is the securitization vehicle and primary bond issuer for the Eurotunnel group.
Assured Guaranty will provide approximately €90 million of liquidity for debt service payments, denominated in two currencies in the amounts of £23 million and €64 million. This will be in addition to approximately €300 million of liquidity notes already issued by Channel Link. The financial guarantee, which was issued to the borrower security trustee as beneficiary, guarantees financial obligations under a loan that will provide funds to Channel Link if it is unable to satisfy its debt service payments. The financial guarantee is long term and is committed until 2050.