Project finance deals of the year
WINNER: A5 motorway PPP
Myers of Clifford Chance, Nicholas Bliss of Freshfields,
Elizabeth Fournier of IFLR
The A5 motorway project in Germany was the first to
combine EIB senior debt with a loan guarantee for
trans-European transport (LGTT), and the first A model where a
financial investor became co-sponsor of the project.
The LGTT is offered to sponsors, project companies and
investors involved in project with traffic risk and uses
contingent mezzanine financing to absorb the risk. This
encourages lending on traffic projects as it removes risk from
the senior lending banks, but means a complex intercreditor
agreement had to be developed for the extra layers of debt.
Clifford Chance - bank consortium
Freshfields - sponsors
Simmons & Simmons - EIB
DLA Piper - Strabag
Norton Rose - German Federal Ministry of
Transport, Building and Urban Affairs
The financing for the construction, launch and
operation of a commercial communications...