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Allianz Global Investors (Allianz GI) has refinanced the Venice’s Passante di Mestre motorway, in the first project bond to be partially guaranteed by the European Investment Bank (EIB) in Italy.

More concretely, AllianzGI has acquired a total of  €400 million (US$455.6 million) of class A1 bonds, which are part of an €830 million (US$895.3 million) deal in which other Allianz entities has participated. It is expeted that more than 85% of the bond will be acquired by international AllianzGI clients outside Italy.

The transaction is divided into two tranches, one of €400 million and another of €430 million. The bonds, with maturity on December 31, 2030, are priced at a spread of 185 basis points over mid-swap rate with a coupon of 2.115%.

The Passante di Mestre, a part of the A4 motorway, opened to traffic on 8 February 2009. The project was developed by Concessioni Autostradali Venete (Cav) between 2006 and 2008. The total project investment was €750 million.

The road connects Padua and Venice, starting in the Dolo region and finishing to the north-east in Quarto d'Altino. It includes three lanes plus one emergency lane, each lane measures 3.75 meters apart from the emergency lane which measures only 3 meters, the new stretch of motorway totals 32.3 kilometers.

The objective of the route is to reduce the volume of auto- and truck-based traffic passing through Mestre  to reach non-local destinations like Austria, Slovenia and other Eastern European countries.

According to sources, Adrian Jones, director of Infrastructure Debt at AllianzGI, stated:

"We’re very pleased to have been part of this significant refinancing deal, the first project bond of its kind in the Italian market. The Passante di Mestre is a vital artery in Venice’s transportation system and ensuring its sound financial footing will benefit the local community for years to come."

"Fundamentally, the transaction is good news for our investors, the public authorities and the issuer. With over €5bn worth of transactions in our infrastructure debt portfolio, institutional clients can have confidence in our ability to manage infrastructure projects that secure the long-term, stable cash flows needed to match their liabilities."

Klaus-Peter Roehler, CEO of Allianz Italia, commented:

“As a long-term investor, we are glad to have finalised this important deal in Italy, confirming our strong trust in the country and benefiting both our customers and Italian citizens living in the North East area. Infrastructure investments allow us to offer clients attractive returns rooted in solid assets; these are particularly relevant in the current low interest rate scenario."