|
Hungary's M5 toll motorway financing completed
Financing of the single largest non-sovereign syndicated loan in Hungary, the M5 Toll Motorway project, closed in Budapest today. The syndication was arranged by the European Bank for Reconstruction and Development (EBRD), Commerzbank Aktiengesellschaft (Commerzbank) and ING Bank N.V. (ING Bank). They have raised a FRF 1.3 billion (ECU 204 million) B-Loan facility for the benefit of AKA Alföld Koncessziós Autópálya Rt, a privately owned Hungarian concession company set up to finance, build, operate and maintain the M5 toll motorway, which will run from Budapest to Hungary's southern border.
Jacques de Larosière, President of the EBRD, said: "This project is our second transport sector BOT (Build-Operate-Transfer) project in central and eastern Europe. The construction works for the first, the M1-M15 motorway linking Vienna to Budapest, are being completed on time and within budget, and opening will take place in January 1996. The M5 project proves once again the dedication of the Hungarian government to concession financing, and its strong support by the EBRD."
The EBRD, Commerzbank and ING Bank, all having considerable experience in the successful financing of major infrastructure projects, were supported in the syndication by Budapest Bank Rt. as local bank coordinator. The lending syndicate comprises 16 international and 4 local banks. The EBRD will provide hard currency loans, offer guarantees to the participating banks for the final repayment of their loan, and provide a forint loan as well as a partial guarantee for the Budapest Bank loan. Altogether, the EBRD's contribution exceeds a third of the total financing. This is the third large private sector loan syndicated in Hungary by the EBRD this year, after MOL (US$ 55 million) and MATAV (US$ 300 million).
The first phase of the project, which runs from Budapest to Kiskunfélegyháza, comprises the upgrading and tolling of an existing 27 km motorway, the completion of a second carriageway parallel to 29 km of existing one-lane motorway, the construction of 40 km of a new dual two-lane motorway, and the operating and maintenance of the motorway for the 35-year concession period. Construction is expected to start in January 1996, and completion is anticipated for June 1998.
Shareholders of the concession company are Bouygues of France and its subsidiary Screg, and Bau Holding of Austria and its subsidiary Magyar Aszfalt of Hungary. The operator is the Intertoll Group of South Africa.
Members of the international lending syndicate are Kreditanstalt für Wiederaufbau, Istituto Mobiliare Italiano, Bank Austria, DG Bank, De Nationale Investeringsbank, Bayerische Vereinsbank, Westdeutsche Landesbank Girozentrale, Westfalenbank, Crédit Foncier de France, Efibanca, Girocredit, Industrial Bank of Japan, Korea First Bank, and Landesbank Rheinland-Pfalz.
|
