International law firm Ashurst has advised Superstrada Pedemontana Veneta S.p.A. on a €1.57 billion bond issue to finance the construction of the Pedemontana Veneta toll road.

The bond issue, which closed on the 29 November 2017, is divided into two tranches: €1.221 billion, variable Rate (EONIA +1% undrawn, 5% drawn) Senior Secured Amortizing Notes due 2047; and €350 million 8% Subordinated Secured Notes due 2027 . Both tranches are listed on the Irish stock exchange in Dublin.

The Superstrada Pedemontana Veneta road project has a total length of around 162km, comprising the new toll motorway (94.6km) which will connect the A4 to the A27 in the north of Veneto, between Montecchio Maggiore (Vicenza) and Spresiano (Treviso) spanning 36 municipalities; and 68.3km of access road and ordinary road.

This is the largest project bond for a toll road and the first unrated project bond for a greenfield infrastructure. It is also the largest European project bond issued without the credit enhancement of the European Investment Bank PBCE and the first project bond of a greenfield infrastructure in Italy.

The issuer concessionaire project company Superstrada Pedemontana Veneta S.p.A. is the project company incorporated by the sponsor Consorzio Stabile SIS ScPa, which comprises two companies of the Fininc group - INC S.p.A. and SIPAL S.p.A. - and Sacyr Construccion Sa Sociedad Unipersonal, to act as concessionaire of the toll road DBFOT.

JPMorgan acted as Global Co-ordinator and Joint Bookrunner, Banca IMI, Santander, Banca Akros - Gruppo Banca BPM acted as Co-Global Co-ordinators and Joint Bookrunners, and Kommunalkredit acted as Joint Bookrunner.

The grantor of the concession is the Veneto Region.

The Ashurst cross-border team was led by Milan-based partner Franco Vigliano, assisted by debt capital markets partner Stephen Edlmann, counsels Umberto Antonelli and Fabio Balza (for tax aspects),  senior associate Federica Periale, and associates Nicola Toscano and Rosario Morasca.

The London-based team consisted of partners Eric Stuart and James Coiley, counsel Christopher Hardingham, senior associates Rodrigo Romero Hidalgo and Carl Baker, and associates Jake Hadfield and Josh Ludlow-Eyre.

The Madrid based team consisted of Partner Manuel López, and associates Pablo Briceño and María Echániz.