ABSTRACT
Banks have closed the debt financing for both stretches of the 2.5bn Barcelona Metro Line 9 PPP: the 26-year 770m commercial loan for Stretch I and the 26-year 360m loan for the financing of Stretch IV. Barcelona-based partner Hector Bros led his team on the transactions. The regional government was advised by Garrigues, David Sanz and Mikel Tejada. Sponsors for Stretch I of the Barcelona Metro were advised by Uria Menendez, whilst Clifford Chance advised the sponsors on Stretch IV. Ineco acted as technical adviser. No financial advisers were mandated in either of the two tranches. The lenders are receiving strong support from both the regional government and the EPC contractors of the Barcelona Metro project. Construction risk is covered through strong EPC agreements rather than sponsor guarantees. The operation of the Barcelona Metro is outside the scope of the PPP and will be handled by Transport Metropolitans de Barcelona (TMB), the main public transit authority in Barcelona.
