Rubicon Infrastructure Advisors has announced that the A12 motorway project in the Netherlands has reached financial close. 

The A12 is a brownfield availability-based PPP project with a track record of solid operations owned by BAM and PGGM through their successful joint venture BAM PPP PGGM Infrastructure Coöperatie U.A.

Following a competitive funding process carried out by Rubicon, a commercial bank was selected as the mandated lead arranger to provide the funding alongside the European Investment Bank (EIB). Rubicon managed a process resulting in competitive terms and conditions and an extension of both the commercial tranche and the EIB tranche by half a year. 

The A12 (Utrecht-Lunetten & Veenendaal Motorway) is one of the most important motorways in the country going from the Hague, in the West, to the German border in the East (about 140 km). A large part of the road has already been widened to 3 or 4 lanes in each direction. This contract has widened the remaining stretch of 30 km. Construction works commenced early 2011 and were completed in August 2012, this relatively short construction period has significantly reduced the impact on road users.

The concession period is for 20 years, until 2033. The capital value of the project is €248 million (US$262 million).

Commenting on the transaction, Christian Kummert, Managing Director and head of Rubicon’s Debt Advisory Group said:

“We are delighted to have closed our second refinancing in the Netherlands with BAM and PGGM. While the project’s performance did not cause any credit issues for lenders, the novation of the swaps was complex and required not only careful management of the process but also a very specific structure.  We are pleased to have successfully executed another transaction for two of Europe’s most successful infrastructure players”