The first ever refinancing of a public-private partnership
contract (PPP) has closed in France, opening the door for other
government agencies to seek out the capital markets for more
favourable long-term funding terms.
The transaction’s main purpose was to refinance
the various tranches of bank debt attached to the so-called
French Pentagon PPP, in Paris, which has a value of
approximately €740 million ($828 million).
The syndicate of lenders included BBVA, Crédit
Industriel et Commercial, Natixis and Société
Générale. PPP consortium company Opale
Défense won the contract to manage and maintain the
French Ministry of Defence’s (MoD) Paris
headquarters for 30 years, until December 2041.
Construction of the Balard site was finalised in 2015 by
Bouygues, after which Opale looked into debt refinancing
– 2015 was also the year that the French state started
making payments to the company as part of the PPP contract.