Balard Ministry of Defence Headquarters achives refinancing closure
This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.
The French Ministry of Defence has announced that it has achieved refinancing closure of the defence department's new building.
In October 2016, the Ministry approved the refinancing of the PPP for the landmark building in Paris, which is referred to as the 'French Pentagon'. The French government approved a hybrid bond (80%) and bank loan (20%) scheme for the refinancing of senior debt for the project.
The 30-year debt package amounts to €806 million (US$879 million).
HSBC was selected to arrange a private placement. HSBC is also providing the bank debt portion of the scheme.
The project was awarded in February 2011. The project’s sponsor is an SPV led by Bouygues, and also comprising South Europe Infrastructure Equity Finance (SEIEF), FIDEPP and Caisse des Depots et Consignations (CDC) as equity providers.
The complex, built in Balard on the outskirts of Paris, houses 9,300 employees and comprises over 467,000 square metres of office space. The building is shaped as a hexagon, hence it is also known in France as the ‘Hexagone’. Completion of works was completed last year.
The 26-year PPP project has a capex of €600 million.
Gide has acted as legal advisor to the bank and CLP-Cliperton to the project owner. Ministry of Defence has been advised by De Gaulle Fleurance et Associés and Watson Farley & Williams.
This is the first time that the French state has initiated the refinancing of a PPP, as it is usually an initiative of the project’s private partner.
Country news
-
-
April 26, 2017
Abertis reaches 100% in French subsidiary
Abertis has reached an agreement to acquire from CNP an additional stake of 5.1% in Holding d’Infraestructures de Transport (HIT), the company which controls 100% of Sanef. This transaction will imply a cash out for Abertis of €238 million (US$259 million). In this way, Abertis will reach, at the closing of the last agreements announced, up to 100% stake in its French subsidiary.
Read more -
April 25, 2017
France tenders RCEA road expansion PPP
The government of France has launched the tender involving the concession contract for the development of the RN 79 Centre-Europe Atlantic road PPP project.
Read more -
March 31, 2017
Abertis to reach near 90% stake in its French subsidiary Sanef
Abertis has reached an agreement to acquire an additional stake from Predica in Holding d’Infraestructures de Transport (HIT), the company which controls 100% of Sanef, of at least 15% and up to 17%, depending on the preemption rights from remaining minority shareholders.
Read more -
March 23, 2017
Ferrovial places a 500 million euro 8-year bond at a 1.375% coupon
Taking advantage of the current market conditions with low interest rates, Ferrovial has priced a €500 million (US$540 million) 8-year senior bond. The issue was priced at 85 basis points over midswap, with a coupon of 1.375%.
Read more -
March 21, 2017
Suez and Caisse de dépôt et placement du Québec buy GE Water
SUEZ has announced that, together with Caisse de dépôt et placement du Québec, it has entered into a binding agreement to purchase GE Water & Process Technologies from General Electric Company for €3.2 billion (US$3.4 billion) enterprise value in an all‐cash transaction.
Read more
