Sacyr : and Fininc close the financing of the Pedemontana-Veneta highway (Italy) with an issuance of €1,571 million in bonds

30/11/2017

• This is one of the largest bond issues in Europe for a greenfield project.

• The road's income backlog over the 39 years of management will be close to €12 billion.

• The highway will hold an estimated initial traffic of 27,000 vehicles per day, of which 20% will be trucks.

The SIS consortium, consisting of 51% by Fininc and 49% by Sacyr, has successfully closed the financing to complete the construction of the Pedemontana-Veneta highway in the region of Veneto (Italy). Yesterday, November 29, the consortium completed a bond issue valued at €1,571 million. The global investment planned on the highway stands at €2,566 million.

The financing of the project is structured in two parts:

• €1,221 million in senior bonds:

• expiration date June 30, 2047

• 5% coupon payable on a semi-annual basis.

• €350 million in subordinated bonds:

• expiration date Wednesday, June 30, 2027

• 8% coupon payable on a semi-annual basis

This bond issue is one of the largest in Europe for a greenfield project, and is listed on the Dublin Stock Exchange

In addition, the project has subsidies amounting to €915 million. As for shareholder's equity that the project will require, this stands at €430 million, of which €100 million have already been disbursed. The concession company, Superstrada Pedemontana Veneta, is in charge of the design, construction, financing, operation and maintenance of the toll highway for a period of 39 years from the completion of construction.

Traffic estimated

The initially traffic estimated for the highway is 27,000 vehicles per day, of which 20% is expected to be heavy traffic, and can reach over 60,000 vehicles per day in the final years of the concession. The backlog of future earnings through the 39 years of management will be approximately of €12 billion.

The Veneto Region will pay an availability payment to the concession company of €165 million when it enters into operation, and which will increase annually based on inflation and growth rate expectations, so that the average annual payment throughout the concession will be €280 million.

Sacyr will receive a total dividend of approximately €2,700 million from the concession company for the duration of the concession

A strategic asset

The Pedemontana-Veneta Highway is one of the most relevant infrastructures under construction in Italy and one of the main ones in Sacyr's backlog. The project requires the construction of 162 km: 94 km of which correspond to the main road that will connect 34 municipalities and the industrial area of Vicenza and Treviso; and 68 km will correspond to secondary roads. This road will have two tunnels: Malo Tunnel (6 km) and S. Urbano Tunnel (1.5 km) and eight viaducts.

The highway is part of the European TEN-T and is considered a strategic asset of national relevance as it is located between the existing A4 and A27 highways, crossing the Veneto Region, passing through the provinces of Vicenza and Treviso.

In its 30 years of activity, Sacyr has displayed its proven experience, technical and financial capacity, with a committed global investment of €28 billion. The company specializes in greenfield projects in which it carries out the design, financing, construction and asset management. Thanks to this comprehensive approach of the business and its active management of the projects, it provides an added value to its concessions that enables access to financial partners.

It currently has 35 assets distributed across ten countries (Spain, Portugal, Chile, Colombia, Italy, Ireland, Peru, Mexico, Paraguay and Uruguay) which include: highways (3,578 kilometers) and hospitals (more than 2,500 beds) and transport hubs.

http://www.sacyrconcesiones.com/es_es/Actividad/Carreteras/ITA/Pedemontana-Veneta/default.aspx