First projects in line for EU 2020 bonds
According to reports, the bank is currently in discussions with the winning team of Cintra, Acciona and Meridiam on Spain’s €998m A66 highway to provide subordinated debt for an A-rated bond issue.
Options reportedly being discussed include a bridge loan for the construction phase of the A66 taken out by a bond after completion, and a short bridge facility of possibly one year taken out by a bond while still in construction, said one report.
Belgium’s €550m A11 Bruges-Westkapelle PPP and Germany's €500m A7 are also being considered as a pilot scheme this year, said the report.
The EIB confirmed to PPP Bulletin that both the A66 and the A11 would in principle be eligible for EU 2020 bond financing.
A formal announcement is expected in the summer, added a spokesperson.
The European Commission has previously stated it would allocate €230m for project bonds during a pilot phase in 2012 and 2013, rising to a "significant" but unspecified sum as part of its €50bn infrastructure plan from 2014.