PARIS–(BUSINESS WIRE)– Assured Guaranty (Europe) SA, an indirect subsidiary of Assured Guaranty Ltd., announced its role in guaranteeing €200 million of debt instruments for Autoroute de Liaison Seine-Sarthe Corporate (“ALiS”). ALiS is an entity backed by a consortium of financial sponsors including Aberdeen, CVC, PGGM, and Vauban. This transaction underscores the growing demand for robust financial guarantees in major infrastructure financing, particularly in the European transportation sector.
The guaranteed debt, totaling €200 million, comprises a 30-year amortizing floating-rate loan provided by a syndicate of four Spanish banks – Bankinter S.A., Kutxabank, BCC-Grupo Cajamar, and Abanca. Complementing this is a 35-year amortizing fixed-rate note issued to a single United Kingdom-based institutional investor. These debt tranches were integral to a larger refinancing effort by the sponsors to optimize the capital structure of the A28 toll road in northwestern France, a critical artery that has been operational since 2006.
Beyond securing the loan and note, Assured Guaranty (Europe) SA also issued a €55.5 million debt service reserve guarantee. This reserve facility is designed to cover six months of debt service obligations for ALiS’s entire outstanding debt, providing an additional layer of security and financial stability for the project.
Raphael de Tapol, Chief Executive Officer of Assured Guaranty (Europe) SA, highlighted the strategic importance of the transaction. “This deal further validates the indispensable value our guarantee brings to major infrastructure sponsors seeking cost-effective, long-term financing solutions for vital infrastructure projects,” he stated. “We are pleased to have collaborated with both leading banks and sophisticated institutional investors to achieve a highly competitive all-in cost of debt, facilitating the comprehensive refinancing of this essential transportation corridor within the European road network.”
Yannick Kouam, Director of Infrastructure Finance at Assured Guaranty (Europe) SA, emphasized the financial engineering and regulatory benefits. “This transaction powerfully illustrates the escalating appetite from both the banking sector and institutional investors for our financial guarantees,” Kouam remarked. “By leveraging Assured Guaranty (Europe) SA’s AA rating from S&P Global Ratings, lenders benefit from significant regulatory capital relief. This advantage enabled them to offer exceptionally long-term financing at highly attractive pricing for this critical infrastructure asset.”
Domiciled in Paris, Assured Guaranty (Europe) SA is the dedicated financial guarantee business of Assured Guaranty Ltd. in continental Europe. The company boasts a strong credit profile, with an AA rating from S&P Global Ratings and an AA+ rating from Kroll Bond Rating Agency, positioning it as a trusted partner for large-scale financing initiatives.
The legal advisory for Assured Guaranty (Europe) SA on this transaction was provided by A&O Shearman, while Rothschild & Co. served as the financial advisor to ALiS. The role of mandated lead arrangers was undertaken by Bankinter, S.A., Société Générale, and Crédit Agricole Corporate and Investment Bank, showcasing a coordinated effort from prominent financial institutions.
Assured Guaranty Ltd., the parent company, is a Bermuda-based holding company with a significant presence in the credit enhancement product market. Through its subsidiaries, it provides these services to the U.S. and non-U.S. public finance, infrastructure, and structured finance markets. The company also diversifies its operations through asset management via Sound Point Capital Management, LP, and annuity reinsurance through Assured Life Reinsurance Ltd. Assured Guaranty Ltd. is publicly traded on the NYSE under the ticker symbol AGL.
This transaction serves as a compelling case study in how specialized financial guarantees can de-risk complex infrastructure investments, enabling long-term capital formation and supporting the development of essential public utilities. The collaboration between financial sponsors, banks, institutional investors, and credit enhancers like Assured Guaranty is a cornerstone of modern infrastructure finance, driving economic growth and connectivity across regions.
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