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PGGM, Dutch developer reach A12 refinancing deal

BAM was awarded the €260m project to widen a 30km stretch of the roadway in 2010 and formed a joint venture with PGGM the following year.

A joint venture between a Royal BAM Group subsidiary and PGGM has reached financial close on the refinancing of a section of the A12 motorway in the Netherlands.

BAM, a Dutch developer, was awarded the €260 million project in 2010, agreeing to design, build, finance and maintain the widening of a 30km section of the motorway from Utrecht-Lunetten to Veenendaal, with the concession running for 22 years. The joint venture – dubbed BAM PPP PGGM Infrastructure Coöperatie – was formed in 2011 and has invested in approximately 30 projects in Europe, including the A12.

The refinancing saw a commercial bank, the identity of which was not disclosed, provide funding alongside the European Investment Bank in a process that extended both the commercial and EIB tranches by half a year, according to Rubicon Infrastructure Advisors, which managed the process. The financial terms of the refinancing were not disclosed.

Rubicon managing director Christian Kummert said that while “the project’s performance did not cause any credit issues for lenders, the novation of the swaps was complex and required not only careful management of the process but also a very specific structure”.

The refinancing marks the second Rubicon has closed with the BAM PGGM joint venture in recent months. In December, the JV successfully refinanced the Poort van Den Haag Supreme Court project, also in the Netherlands.