Barclays fund in €86m French sports deal(2)

The Barclays European Infrastructure Fund II led a team that reached financial close on a project to renovate a military sports centre in France. Dexia Credit Local and Bank of Tokyo Mitsubishi backed the deal with debt.

The Barclays European Infrastructure Fund II (BEIF II), together with a subsidiary of French infrastructure developer Vinci, has reached financial close on a contract to rehabilitate a military sports centre in Fontainebleau, located some 50 kilometres south-east of the centre of Paris.

To help fund the deal, BEIF II got an €86 million cheque from Dexia Credit Local and Bank of Tokyo Mitsubishi. The loan breaks down into a €76.5 million construction facility, maturing in 2.5 years but valid up to a maximum of four years, a €6.2 million equity bridge facility lasting for 2.7 years and a €3.45 million, three-year VAT tranche.

Once expired, the construction facility will be refinanced by a 19-year project facility of up to €5.1 million and a 30-year loan that can reach €73.6 million. The latter is known as the ‘Dailly facility’, since it takes advantage of France’s Dailly law, named after a former senator, which allows sponsors to transfer the government revenues that back public-private partnerships from the procuring authority to the creditors, once construction of a project ends. This helps de-risk projects.

Norton Rose and KPMG provided legal and financial advice, respectively, to the concessionaire.

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