First Irish PPP backed by EIB’s project bond initiative reaches financial close

The National Development Finance Agency (NDFA) today welcomed the N25 New Ross Bypass Public Private Partnership (PPP) project reaching financial close and becoming the first Irish project to avail of the European Investment Bank’s credit enhancement programme.

The EIB provides eligible infrastructure projects with Project Bonds Credit Enhancement (PBCE) in the form of a subordinated instrument – either a loan or contingent facility – to support senior project bonds issued by the company undertaking the project. The objective of the PBCE initiative is to widen access to sources of finance and minimise overall funding costs by enhancing the senior bonds’ credit rating. The N25 project’s senior bonds were placed with clients of Allianz Global Investors and achieved a provisional Baa1 (stable) rating from Moody’s Investor Service.

NDFA Director, Brian Murphy said: “The NDFA, as financial advisor on the N25 PPP, is very pleased to have helped the first Irish infrastructure project to avail of the EIB’s credit project bond enhancement initiative.

The N25 is the last of four projects, in what is our second roads programme, for which the NDFA has provided financial advice to Transport Infrastructure Ireland. In total the NDFA oversaw €850 million of debt raising for the programme.

In the past 18 months the NDFA has been involved in €1.8 billion of projects through our procurement and financial advisory functions with 2016 seeing social housing, accommodation, health and justice programmes at various stages of pre-procurement.”

The N25 project involves the construction of 13.6km of new dual carriageway and 1.2km of new or upgraded single carriageway along with various junctions and road bridges. The NDFA, which is part of the National Treasury Management Agency (NTMA), provided financial advice to the procuring authority, Transport Infrastructure Ireland, through all stages of the project’s procurement.