11 Jan, 2008
Published: 08:53 Friday 11 January 2008
By: Charlie Parker, Investment Editor
As Northern Rock's suitors struggle to secure final agreement
on funding for the collapsed Bank the Government's adviser
Goldman Sachs is considering a bond issue, reports the FT.
It is believed that Goldman's is reporting back to the
Chancellor Alistair Darling on the different financing options
available as early as this week. The options have been widely
The moves could come alongside the sale it Northern Rock's
Lifetime Mortgage book to JP Morgan for £2.25 billion
announced this morning.
The bond option has been touted in today's papers but previous
reports have suggested that the Government may turn to sovereign
wealth funds, possibly from the Arab states or the Far East, in
order to secure finance.
Sovereign funds may relish the opportunity to gain a foothold in
the UK banking market though it is understood Darling has only
agreed to consider the funds 'in principle.'
The prospect of a bond issue appears to have been well received by
the market. While the FTSE 100 has opened the day down Northern
Rock (NRK) shares are up 4.11% to 89p