BBVA arranges a SACE-covered Buyer Credit in favour of The Brazilian State of TocatinsNovember 26, 2012
Global Trade Finance Deal Announcement
- The underlying infrastructure project consists of the construction of n. 16 bridges and related connection roads performed by the Italian Rivoli SpA
- The SACE (i.e the Italian Export Credit Agency)-covered Buyer Credit Facility is for a total amount of USD 143,198,163,- with a door to door tenor of 11 years. BBVA SA Milan Branch, together with Deutsche Bank SpA, is also acting as Agent
- By its size and characteristics, this facility might be considered as one of the most important Brazilian sovereign risk transactions under the traditional SACE insurance policy and SIMEST interest make up agreement during 2012
BBVA through its unit of Global Trade Finance in Milan arranged a SACE-covered Buyer Credit in favour of the Brazilian State of Tocantins under the Ministry of Finance Brazil's guarantee. The underlying infrastructure project consists of the construction of n. 16 bridges and related connection roads performed by the Italian Rivoli SpA.
On November 19th 2012, BBVA SA Milan Branch and Deutsche Bank SpA, jointly the Arrangers and Lenders, signed this SACE (i.e the Italian Export Credit Agency)-covered Buyer Credit Facility for a total amount of USD 143,198,163,- with a door to door tenor of 11 years. BBVA SA Milan Branch is also acting as Agent.
Rivoli SpA is an Italian SME leader in the field of prefabricated systems for bridge and road building with a complete range of pre-stressed reinforced concrete beam, with a strong presence and track-records in Brazil. Over the years they have designed and built more than 500 bridges in Brazil and 1.000 bridges in Italy, and realized more than 300 km of roads.
BBVA SA has been supporting both the Italian supplier Rivoli SpA and the Brazilian State of Tocantins on the financing of this transaction for the last three years. It is worth noting that, despite the European markets turmoil, the Lenders have been able to maintain the same financing conditions to the Borrower (i.e. the Brazilian State of Tocantins) thanks to a very supportive approach coupled with the intervention of SIMEST SpA (the Italian CIRR Subsidy Intervention Agency).
To be underlined that these two prominent European financial institutions / Lenders (i.e. BBVA SA and Deutsche Bank AG) have financed this transaction by using their own resources without tapping the public funds available in Italy for the export related transactions covered by SACE.
The strong commitment to Italy lies in the fact that these two European non-Italian financial institutions have entered a transaction and supported an Italian SME to conclude a prominent transaction on Brazil; these two institutions with an operative presence on the Italian market demonstrated their "European high responsibility" by accompanying this Italian market player. In line with the previous aspect, the Lenders have also decided to use the services of a prominent Italian law firm (Studio Legale Chiomenti in Rome).
This project has also a clear social impact by improving the infrastructural facilities in the Brazilian State of Tocantins.
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