Ashurst advises funders on financial close of Slovakia's R1 Expressway PPP

27 August 2009

Ashurst has advised the funders to the Granvia Consortium (Vinci Concessions and Meridiam) on the first major Slovakian PPP and one of the largest transport deals in the CEE to date. The deal was funded by 12 commercial banks in addition to the EBRD with total debt commitments amounting to approximately €1bn.

The 52km R1 Expressway will connect the towns of Nitra and Tekovské Nemce and by-pass the city of Banská Bystrica, to the east of Bratislava, with construction due to start in Autumn 2009.

This project follows Ashurst closing the M25 DBFO earlier this year, the largest deal to close in the UK since the onset of the global financial crisis.

The Ashurst team was led by energy, transport and infrastructure partners Jason Radford and Patrick Boyle, with senior associates Matthew Rickards and Nikhil Markanday, associates Yassira Zaandam, Jo Kay and Yai Tjang Tong, and trainees Nicholas Dimitriou, Richard Crowley and Ed McNeil. Derivatives partner Chris Whiteley provided advice on swaps.

Commenting on the deal, Patrick Boyle said:

"The size of the project and its being the first PPP project in the Slovak Republic made this a challenge for all parties. Despite this, Ashurst's extensive PPP and project financing experience assisted the funders in getting comfortable on all the risks and obstacles that presented themselves. We continue to show that we have a first class project finance/PPP practice across all jurisdictions and for every kind of deal."

Jason Radford added:

"To assist in closing the first PPP project in the Slovak Republic with such a large club of banks providing over €1bn of debt is a huge achievement in the context of the current lending environment and a testimony to the expertise of the sponsors, funders and their respective advisers. To close two €1bn-plus road deals in the space of five months also demonstrates the strength of the Ashurst ETI practice."

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