Financial Close achieved for Brescia-Bergamo-Milano highway concession
The SPV formed by Autostrade Lombarde (89.29%, Pizzarotti (3,10%) and Unieco (2,20%) has finally got project financing for the motorway linking Milan to Brescia through Bergamo (BREBEMI) of 62.1 km.
According to the President of BREBEMI, Francesco Bettoni, the project, awarded in 2009, is at 65% of work and the conclusion of construction is expected for the first half of 2014.
The obtention of financing has been very complicated given the scarcity of long-term debt in the markets and the huge amount of the investment. The Cassa Depositi e Prestiti (70 % owned by the Italian Government) and the European Investment Bank (EIB) have stepped in to help financing this project. So far the project had advanced through the equity of the consortium members and the bridge financing (€546 million).
The structure of the financing is the following:
Long term debt (21 years):
- Cassa Depositi e Prestiti: €291 million (€40.2 million provided through the commercial banks: Intesa Sanpaolo, Unicredit, MPS Capital Services, Centrobanca and Credito Bergamasco)
- EIB: €469 million (€398.3 million provided through the commercial banks: Intesa Sanpaolo, Unicredit, MPS Capital Services, Centrobanca and Credito Bergamasco)
- Cassa Depositi e Prestiti: €529 million (€19.8 million provided through the commercial banks: Intesa Sanpaolo, Unicredit, MPS Capital Services, Centrobanca and Credito Bergamasco)
- EIB: €231 million (€196.2 million provided through the commercial banks: Intesa Sanpaolo, Unicredit, MPS Capital Services, Centrobanca and Credito Bergamasco)
The commercial banks have also provided €298 million in short term debt:
- €20o million for VAT financing,
- €50 million for Standby financing and
- €48.5 million for the performance bond.
Total short term debt: €298 million
The SPV members are providing €520 million in equity.
Sources: EIB and Italian newspapers
