Spain closes first road PPP of 2013

in Antonio Fabrizio 19 Jun 2013 | Spain | Roads June 28, 2013 Road_3 Road_2 Road_1

The N-636 road project in the Basque Country has formally reached financial close, the first Spanish PPP deal to do so in 2013.

The deal closed three weeks ago, although the financial close hasn’t formally been made public yet.

InfraNews has learnt that a EUR 245m debt package is being provided by a club of seven commercial lenders, with an additional facility of EUR 11m being provided by Fond-ICO infraestructuras, a subsidiary of state-owned lender Instituto de Credito Oficial (ICO).

The commercial lenders are Banco Popular, Banco Sabadell, Bankia, BBVA, Caixabank, Kutxabank, and SG. The ticket sizes range between EUR 16m and EUR 47.5m.

The seven lenders are providing a single tranche in the form of an eight-year hard mini-perm which is expected to be refinanced in the short term.

The ICO fund, which is managed by Axis, is providing EUR 11m in the form of subordinated debt. Fond-ICOinfraestructuras normally provides stakes ranging between EUR 10m and EUR 60m via equity or quasi-equity products in Spanish greenfield projects.

Sponsors and advisors
The sponsors, an Acciona-led consortium, were awarded the contract in March 2012.

The consortium comprises Acciona (22.8%), as well as local firms Excavaciones Viuda de Sainz (22.8%), Exbasa Obras y Servicios (22.8%), TIIC Concesiones (19.9%), and Transitia Concesiones (11.7%).

The sponsors are providing EUR 50m in the form of equity. The project’s total investment amounts to just over EUR 300m.

Advisors to the project are Cuatrecasas (lenders’ legal advisor), Jacobs (technical advisor), PwC (model auditor) and Uría Menéndez (sponsors’ legal advisor).

Project Details
The 30-year project will involve building, maintaining and operating the 10km stretch of the N-636 between Gerediaga and Elorrio and maintaining and operating the existing stretch of the Elorrio bypass.