Lloyds Banking Group PLC (ADR)(NYSE:LYG) announced that it had surpassed the maximum limit set by the UK authorities to provide financial assistance to UK infrastructure projects. As per the reports, the maximum limit for the year was £10 billion, but Lloyds has allocated over £11.3 billion up till now.
Insights of The Matter
The £10 billion limit for the year set by the Lloyds and UK authorities was in conjunction with its attempt to provide financial support to key infrastructure projects that are run by the government under National Infrastructure Plan. As per the reports, Lloyds looks forward to providing a funding of up to £30 billion by the end of 2017 to government as part of its objective to make Britain a prosper country.
There are various programs, such as Intercity Express Program that includes maintenance and delivery of depots and train sets, Thameslink Rolling Stock Program that comprises of maintenance and delivery of new depots and trains. These initiatives need huge financial assistance in order to get completed on or before the deadline.
There are other projects also that need government or private funding. They include the development of Thames Tideway Tunnel, installation of Galloper Offshore Wind Farm, and quite a few others.
The senior management of Lloyds is quite satisfied with the way things are moving at present and hopes that situation will continue to improve in the future. According to Guillaume Fleuti, Head- Infrastructure & Energy, Lloyds, raising capital for developing key infrastructure is the first step towards delivering excellent economic growth.
Lloyds Banking Group PLC (ADR)(NYSE:LYG) is ahead of its schedule at the moment concerning funding, and if things continue to fall in line, it will finish the targeted £30 billion by the end of 2016. Further steps taken by the company to live up to everyone’s expectations will be announced at a later date.