Ireland's National Roads Authority (NRA) and a BAM PGGM Iridium consortium has reached financial close on the M11 Gorey to Enniscorthy PPP project in Ireland.
The €400 million project (total investment) will involve the design, construction, financing, operation and maintenance of 31.4 km of dual carriageway (M11 and 'N80 Link Road' routes) and the design, construction and financing of 8.0 km of single carriageway (N30 route).
The M11 Gorey to Enniscorthy Scheme will form a strategic component of the motorway network, providing a high quality safe link within the south east region of Ireland. It will also ease congestion by bypassing Ferns, Camolin and Enniscorthy. The improvement of the N11/M11 route is a specific objective of Ireland's infrastructure investment programme.
Total financing of €248 million was provided by a combination of EIB lending and Société Générale arranged note and an equity Bridge Facility.
For this landmark transaction Société Générale acted as Sole Note Arranger for the €113 million of senior secured notes which were privately placed with three institutional investors. Société Générale was also Sole EBL Lender and Swap Provider for the €27 million Equity Bridge Facility.
The investor group, which includes Aviva Investors, Babson and NN Investment Partners B.V., purchased partly paid notes that will provide scheduled financing throughout the construction phase. The notes were documented using the Pan European Private Placement format and rank pari passu with the EIB facility.
BAM PPP PGGM Infrastructure Coöperatie U.A. and Iridium Concessiones de Infraestructuras S.A are committing €27 million in equity to the project.
Construction will be undertaken by a BAM Civil Ltd and Dragados Ireland Ltd joint venture and will commence on site in January 2016, with the project expected to support in the region of 2,500 jobs across Ireland. The operations phase will commence in August 2019, followed by a 25 year concession period.
Consultants to the consortium include legal advisers Pinsent Masons and Ashursts; and financial adviser PWC.