Trans Adriatic Pipeline (TAP) has announced the successful completion of its financing in December 2018, securing 3.9 billion euros – the largest project finance agreed for a European infrastructure project in 2018.
The financing is provided by a group of 17 commercial banks, alongside the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). Part of the financing is covered by the export credit agencies – bpifrance, Euler Hermes and Sace.
The project raised 3.765 billion euros in third party senior debt with a door-to-door tenor of 16.5 years, combining commercial debt along with development financial institutions (DFI) and export credit agencies (ECA) related financing:
EIB Direct Facility, benefitting from a guarantee from the European Union under the European Fund for Strategic Investments EFSI: 700 million
EBRD A-Loan: 500 million
EBRD B-Loan: 500 million funded by commercial banks
ECA facilities, benefiting from comprehensive cover by:
Bpifrance Facility, 450 million
Euler Hermes Facility, 280 million
A SACE Facility, 700 million;
Commercial term loan facility: 635 million directly provided by commercial banks without any ECA or multilateral involvement.
Costs have previously been funded in full by TAP’s shareholders: BP (20 pct), SOCAR (20 pct), Snam (20 pct), Fluxys (19 pct), Enagás (16 pct) and Axpo (5 pct).
TAP was advised by Société Générale as Financial Advisor and Allen & Overy as Legal Advisor; lenders were advised by Clifford Chance.