Norton Rose Fulbright has advised motorways concession company Autostrada Brescia Verona Vicenza Padua (“ABP”) on its capital markets debut with a €600 million (US$636 million) secured senior notes issuance (“the Notes”). This is the first public transaction under new Italian project bond legislation. The Notes, due in March 2020, will pay a 2.375 per cent coupon and have an investment grade rating of BBB- from Standard & Poor's and BB+ from Fitch. The debut issuance benefitted from strong investor interest (66 per cent foreign), with orders being in excess of €2 billion.

ABP’s revenues primarily derive from the operation of motorways under concession, in particular the 146km Brescia-Padova stretch of the A4 Motorway and the A31 Valdastico Mortorway, along with the connecting orbital roads. ABP’s shareholders are a combination of public and private investors. Its parent company is A4 Holding.

Proceeds of the Notes have been used in part to repay existing financial indebtedness of the issuer incurred for the completion of the southern stretch of the A31 Valdastico Motorway. The remaining proceeds will be used to finance the investment plan under the concession agreement.

The Norton Rose Fulbright team was led by head of the Italian banking team, Arturo Sferruzza, assisted by senior associates Elisabetta Negrini, Marco Gelmetti and Marcello Ciampi, associate Luigi Costa, and trainee Lisa Rancitelli. Tax advice was provided by partner Claudio Grisanti. The team was based in the Milan office of Norton Rose Fulbright.