Network Rail Infrastructure Finance reports £27.3 billion in net borrowings

Published 21/07/2025, 16:12
Network Rail Infrastructure Finance reports £27.3 billion in net borrowings

LONDON - Network Rail Infrastructure Finance PLC (NRIF) reported net borrowings of £27.3 billion for the year ended March 31, 2025, a decrease from £28.9 billion in the previous year, according to the company’s annual financial results released Monday.

The company, which acts as the issuer for Network Rail’s Debt Issuance Programme (DIP), saw a gain of £1.59 billion on the fair value of its debt during the fiscal year, compared to an £868 million gain in 2024. This gain was primarily attributed to decreases in the fair value of debt driven by market sentiment on interest rates and risk.

NRIF also recorded a £29 million gain on its derivatives, down from £44 million in the previous year. Finance costs for the period amounted to £1.42 billion, a decrease from £1.84 billion in 2024.

The company’s debt portfolio consists predominantly of UK RPI index-linked debt, which accounted for 92 percent of gross debt at the end of March 2025.

Since July 2014, Network Rail’s funding requirements have been met by the Department for Transport via a loan facility and grants to Network Rail Infrastructure Limited (NRIL). As a result, NRIF continues to operate as the administrator of existing debt issues and derivatives but is not issuing new debt.

All of NRIF’s outstanding bonds under the DIP continue to benefit from a direct and explicit guarantee from the UK Government under a financial indemnity, which is set to expire in 2052.

The company noted in its report that a consultation titled "A Railway fit for Britain’s Future," published in February 2025, proposes that a new public body, Great British Railways, will integrate the railways and absorb Network Rail Infrastructure Limited. However, NRIF stated this reform will not involve the winding up of NRIL and has not impacted the preparation of its financial statements.

The financial results were based on a press release statement from the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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