FS Italiane announced that Metro 5 closed the renegotiation of nearly EUR 500 million long term debt, reaching above 40% spread reduction as compared to the former applying.
Benefits arising from renegotiation have been shared between Metro 5 and the Municipality of Milan, with the latter seeing a reduction of the Availability Payment above EUR 1 million per year with an overall saving of about EUR 40 million up to the end of concession period (2041).
The improvement achieved by Metro 5 is mainly due to the continuous dialogue with all the lenders and thanks to the completion of construction phase together with the strong financial and operating performances and the international standing of its shareholders.
Renegotiation process started in the first semester of 2018 following the acquisition of 36,7% of Metro 5 shares by Ferrovie dello Stato Italiane in June 2017. The process ended successfully due to the strong and renewed interest in the project shown from all the lenders and notwithstanding the market turmoil on Italian sovereign debt occurred during the same period.
Debt was hold nearly 70% by nine national and international banks (BNP Paribas, IMI, Monte dei Paschi di Siena, Société Générale and Unicredit acting as Working MLA together with BBVA, Credit Agricole, Natixis and UBI), Cassa Depositi e Prestiti and for the remaining amount by institutional investors via project bond.
An infrastructure project developed under Public Private Partnership (PPP) guided by efficiency and good performances, together with the Metro 5 shareholders’ standing have created the basis for project finance to distribute value among all the stakeholders.
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