DEAL: France’s first PPP refinancing

Author: Amélie Labbé | Published: 2 Jun 2017

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. According to...