P.M. BRIEFING : Eurotunnel Short $4.1 Billion
Eurotunnel said today it will raise up to $4.1 billion more from its banks and shareholders to finish its rail tunnel under the English Channel.
The Anglo-French consortium said the cost of the 31-mile tunnel has risen to up to $12.4 billion because of soaring construction and borrowing costs. Only half the boring has been completed, the company said.
Last year, it said the project would cost $11.4 billion, and three years ago the price tag was said to be $7.93 billion.
The company said it will sell up to $815 million worth of new shares to its existing shareholders after it completes talks with its bankers about expanding credit facilities.
Eurotunnel said it expects to increase funds available to the project up to $13.8 billion from $11 billion.
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