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Wednesday 17 Nov 2004

NETWORK RAIL PRICES BENCHMARK - DEBT ISSUANCE PROGRAMME ISSUES

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National

Network Rail is pleased to announce that it has priced the first three tranches of bonds issued under its Debt Issuance Programme. ·         The first tranche consists of £750 million of 10 year bonds with a coupon of 4.875%.  This was priced at 25 basis points over the 4.75% 2015 gilt.  ·         The second tranche is made up of £1.25 billion of 30 year bonds paying 4.75% (again priced at 25bps above the comparable gilt).  ·         The third tranche, which comprises index-linked bonds, was sized at £250 million with pricing at 25bps over gilts. Fred Maroudas, Network Rail’s Director, Funding, said;  “We are delighted with the reception that the inaugural bonds from our Debt Issuance Programme have received. “There has been strong demand from a wide range of investors.  We were very pleased with the quality of the book, which was significantly oversubscribed, and have delivered the tight pricing and large sizes that the best agency issuers achieve.  This represents a good deal for Network Rail, taxpayers and the farepayer. “These first bond issues from the Debt Issuance Programme mark Network Rail’s transition to long-term capital markets funding.  Network Rail now has access to the widest possible sources of funding at the lowest possible cost.   “The success of the first DIP bond issues demonstrates investor confidence in Network Rail’s strategy of benchmark, agency issuance and provides a stable base for our continuing programme of long term investment in the nation’s rail network” -  ends  - In the United Kingdom this press release is directed only at persons (a) who have professional experience in matters relating to investments falling within Article 19(1)(a) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the "Order") and (b) whose ordinary activities involve them in acquiring or disposing of investments (as principal or agent) for the purposes of their business within Article 7(2)(a) of the Public Offers of Securities Regulations 1995 (all such persons together  referred to as "relevant persons"). The investments to which this press release relates are available only to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such investments will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this press release or any of its contents. This press release is not for publication or distribution, directly or indirectly, in or into the United States.  This press release is not an offer of securities for sale into the United States. The securities referred to herein may not be offered or sold in the United States unless they are registered or exempt from registration. There will be no public offer of the securities in the United States.