Eurotunnel is back in the thick of negotiations with debt investors and lending banks across its capital structure as it prepares to refinance old debt in the bond market for a second time.

The cross-channel rail link operator is in the process of improving its creditworthiness and its profile with shareholders and institutional investors by updating its complex capital structure. This includes taking out old debt and replacing it with liquid securities - and in turn lowering Eurotunnel's interest servicing costs. The company refinanced old junior debt last year with a €1.4bn ($1.3bn) asset-backed issue called Fixed-Link Finance 1 and plans to raise up to £740m from a new long-term fixed rate issue in the coming months.