BBVA advising on and financing the concession for the new Autovía de la PlataOctober 23, 2013
First Spanish PPP selected for 2020 Project Bond Initiative (TENT-T)
BBVA Corporate & Investment Banking has successfully advised the consortium comprising infrastructure fund Meridiam, Ferrovial subsidiary Cintra Infraestructuras and Acciona on the public private partnership (PPP) that will build, operate and maintain the A66 road between Benavente and Zamora in Spain. The concession period is 30 years.
On this transaction BBVA is also one of the entities extending a €160 million syndicated loan, which matures in July 2034, to the consortium.
The idea is to refinance the syndicated loan in the months to come with Project Bonds, now that this project has been selected as the first Spanish PPP under the Europe 2010 Project Bond Initiative for financing the Trans-European Transport Network, known for its acronym as TEN-T. This initiative, sponsored by the European Commission and the European Investment Bank, is designed to provide credit enhancement to private developers attempting to finance infrastructure projects so that they can attract additional private finance by issuing potential bonds to institutional investors.
For this stretch of motorway, known as the Autovía de la Plata, the credit enhancement from the European Union takes the form of the loan provided by a European Investment Bank (EIB). Banco Santander and Instituto de Crédito Oficial (ICO) are also participating in the loan alongside the EIB and BBVA.
Meridiam owns 50% of the concession holder, while Cintra and Acciona own 25% apiece.