Search filter
Tags
Tags
Back

Autovía del Camino Financing

02/06/2004

Autovía del Camino Financing

Autovía del Camino S.A. has concluded the financing arrangements for the motorway that will join Pamplona and Logroño. This project, which consists of the construction and operation of the motorway linking the two cities for a thirty-year period under a shadow toll arrangement, was awarded to the consortium formed by Corporación Empresarial de Caja de Ahorros de Navarra, FCC Construcción, S.A. and Navarra de Empresas de Construcción, S.A. (NEC).

An estimated 375 million euros will be invested in the project. According to the contract signed by the consortium and the financing institutions, the operation in broken down into two parts. The first part in the amount of 175 million euros will be provided by the European Investment Bank and the second in the amount of 165 million euros by a syndicate of commercial banks.

Aside from the participation of the European Investment Bank, the financial structure is unique in several ways. For one thing, it is the first time that a project is Spain has been rated by a rating agency. In the case, the project has been classified as "investment grade" which means a substantial improvement to the financing terms and conditions as far as both repayment periods and costs.

Another financing innovation as far as infrastructure projects are concerned, and once again for the first time in Spain, the contracting of a derivative has made it possible to lock in the inflation rate for the next 23 years, thereby providing greater stability in the future generation of cash flow.