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Bridging North America (BNA), a consortium consisting of ACS Group, Aecon Group and Fluor Corporation, is issuing CAD454.5 million (US$350.9 million) in medium to long-term bonds to finance the construction of the Gordie Howe International Bridge. BNA was awarded a contract to design, build, finance, operate and maintain the bridge in June.
The bond issue consists of CAD163.5 million (US$126.2 million) 3.644% series A senior secured notes due 31 May 2038 and CAD291.0 million (US$224.7 million) 4.058% series B senior secured notes due 31 August 2053. S&P Global Ratings has assigned its preliminary 'A-' rating to both.
According to S&P's disclosure, BNA is also in the process of securing a CAD587.14 million (US$453.3 million) senior construction loan facility.
The consortium is contracted to deliver a new 2.5km six-lane cable-stay bridge that will link Windsor, Ontario (Canada) to Detroit, Michigan (USA) over the Detroit River. With a main span length of 853m, the bridge will be the largest cable-stay bridge in North America measured by main span once completed.
The approximately 36-year availability-based concession agreement also covers two approach bridges, Canadian and U.S. Ports of Entry complexes, which will include border inspection and maintenance facilities, and a new interchange on the approach roads to the U.S. POE, including four new road bridges, five new pedestrian bridges, and four long bridges crossing a railway and connecting to Interstate Highway 75.
The projected total construction cost is US$3.46 billion over an estimated 74-month period.
S&P's disclosure states that BNA will use debt proceeds, together with CAD2.74 billion (US$2.115 billion) in progress payments and CAD37.50 million (US$29.0 million) in capital payments from the contracting authority Windsor-Detroit Bridge Authority (WDBA) and CAD93.04 million (US$71.83 million) in equity contributions, to fund construction.
The consortium partners are expected to achieve financial close of the project by the end of next month.
Canada Infrastructure Bank (CIB) has concluded a business agreement with CDPQ Infra, a wholly owned subsidiary of Caisse de dépôt et placement du Québec, regarding its investment in the Réseau express métropolitain project (REM) in Montréal, which will amount to CAD1.28 billion (US$980.5 million).
Read moreAecon Group has announced that it has received approval to rejoin Bridging North America, the team selected as the Preferred Proponent to design, build, finance, operate and maintain the Gordie Howe International Bridge through a public-private partnership valued at over CAD4 billion (US$3.06 billion).
Read moreEllisDon Infrastructure Healthcare has announced that it has reached financial close on a healthcare centre redevelopment project in Toronto. This comes less than one week after West Park Healthcare Centre and Infrastructure Ontario announced that the contract to design, build, finance and maintain the project had been awarded to the EllisDon team.
Read moreBird Construction Inc. (Bird) has announced that it has been selected by Infrastructure Ontario, the Ministry of Community Safety & Correctional Services and the Ontario Provincial Police (OPP) as the preferred proponent to design, build and finance (DBF) the Ontario Provincial Police Modernization Phase 2 project.
Read moreThe Government of Newfoundland and Labrador, the most easterly province of Canada, has identified a shortlist of proponents to move to the Request for Proposals (RFP) stage for the delivery of two new 60-bed long-term care homes through a public-private partnership (PPP).
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