OFI Infravia closes on €230m French highway

The French fund manager is part of a consortium that also includes Portuguese fund manager TIIC and French firms NGE and FAYAT. Natixis, Santander and WestLB provided €110m in debt to help fund the 18km highway stretch.

A consortium of French infrastructure developers NGE and FAYAT, together with local fund manager OFI Infravia and Portuguese fund manager TIIC, have reached financial close on a concession contract to develop a highway stretch on the outskirts of Paris.

The 55-year, €230 million concession will call on the private sector to complete an 18-kilometre route to the south of the A150 highway, linking it with the north section of the A29. The winning consortium will be exposed to traffic risk and charge tolls along the new stretch, but, as a source close to the deal put it, the area has a known traffic history which helps to mitigate traffic risk.

Natixis, Santander and WestLB provided a 24-year, €110 million loan to help close the deal, splitting the tickets equally, with the consortium partners chipping in €80 million in equity. The remaining €40 million will come from a public grant funded by the central and regional authorities.

Orrick Rambaud Martel provided legal advice to the winning consortium with Compagnie Benjamin de Rothschild and Mott MacDonald offering financial and technical advice respectively.

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