M11 PPP shows major rebound in investor appetite for Irish projects

The Director of the National Development Finance Agency (NDFA) has said the M11 Gorey to Enniscorthy PPP road project offers further evidence of a major rebound in investor appetite for Irish infrastructure projects.

Speaking today after the transaction reached financial close, NDFA Director Brian Murphy said there was very strong interest from European and US institutional investors – including major insurance groups and pension funds – in funding the project. He added:

“The private investor group includes both European and US based insurance / pension funds who will lend to the project under a private placement structure. This innovative funding structure is providing value for money to Transport Infrastructure Ireland and is an example of the depth and breadth of funding sources available to Irish PPP projects at very competitive rates.”

The NDFA, 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. The M11 project will involve the greenfield construction of about 39 km of new national roads in Ireland’s southeast. It will include 27 km of standard 2×2 motorway (M11 route), 4 km of dual carriageway (N80 Link Road) and 8 km of single carriageway national road (N30 route).

The preferred tenderer’s funding competition, which was overseen by the NDFA, resulted in the appointment of a funding club of private investors, led by Société Generale, alongside the European Investment Bank (EIB) on a 50:50 basis. As part of its financial advisory requirements the NDFA monitored the progress of the funders’ due diligence which culminated in all funders providing funding commitments for the October financial close.