BBVA Project Finance's eight deals get the highest award by Project Finance InternationalFebruary 4, 2013
Project Finance team at BBVA Corporate & Investment Banking unit has participated in eight transactions chosen as the best deals of 2012 in different geographies and industries by Project Finance International magazine – from Thomson Reuters group. It is especially remarkably the bank's performance in America, where it has participated in five of the seven deals awarded, including the Deal of the Year. The Bond Buyer magazine has also awarded BBVA activity in America in 2012.
Cheniere Energy's Sabine Pass Liquefaction deal has been considered Deal of the Year in America by PFI. The agreement to finance the project was closed on July 2012 for $3.26bn, in which BBVA Compass has acted as Mandated Lead Arranger, Account Bank and derivatives provider. It is the first US Government approved and bank financed LNG project designed to export shale gas out of the US under long term LNG sales contracts. Notably, due to the very liquid supply of LNG at Henry Hub – which is possibly the most liquid trading point for natural gas in the world – there is no long term gas supply contract.
Financing large projects in a liquidity constrained project finance market is an enormous success for participating banks. The $3.6bn pure uncovered bank debt financing is the largest project financing to be executed without support from export credit agencies, multi-laterals or any other similar guarantee.
The strength of BBVA both in North America and Latin America has led the bank to be in four other deals being awarded by PFI as Deal of the Year in the region. In two of them the bank has acted as MLA: Wind Deal of the Year (wind farm in Oaxaca, México) and Petrochemical Deal of the Year (construction of an ethylene and polyethylene production plant in Veracruz, México). In the other two, BBVA has been Bookrunner and MLA: PPP Deal of the Year for Presidio Parkway (a project consisting in the design, build and finance of a highway in the northern portion of San Francisco), and Renewables Deal of the Year for Cerro del Águila (construction of a run-of-river power plant in Peru).
In addition, The Bond Buyer has also awarded BBVA with the Non-Traditional Financing of the Year. The deal involves financing to LAZ Parking of a 50-year concession of the parking system at the Ohio State University.
In Europe there are two transactions named Deal of the Year: the £523m facility provided to a combined cycle power plant in Manchester, and the refinancing for €3.5bn of the 2006's acquisition debt of APRR (Paris Rhin Rhone Highways).
The bank's name is also linked to one of the largest project finance deals in Asia-Pacific in 2012 as BBVA has participated in the $2.8bn syndicated loan for the construction of a coal seam gas liquefaction plant in Queensland, Australia.