Three months following the opening of a branch in Canada, Dexia Credit
Local is pleased to announce the financial close of CAD 963 million
(EUR 687 million) in Wrapped Senior Facilities and of a CAD 52 million
(EUR 37 million) Equity Bridge Loan for the Golden Ears Bridge Project
(“the Project”) in British Columbia, Canada, on March 3. Dexia is one
of both banks selected to arrange jointly this financing, and also acts
as credit agent.
The Golden Ears Bridge is a six-lane bridge which will cross the
Fraser River near Vancouver. Opening of the bridge is scheduled in
June 2009. The Project was awarded in December 2005 to the Golden
Crossing General Partnership, a subsidiary of the German group
Golden Crossing General Partnership is committing to design, build,
finance, operate and maintain the Project for a period of 35.5 years.
After the completion of the construction, the remuneration of this
company will be ensured by payments of Translink (public authority in
charge of transportation in the Vancouver area) linked exclusively to
the quality of the maintenance and the availability of the bridge as no
traffic risk is supported by the project.
The financing structure is particularly innovative in a number of
aspects. Project Facilities benefit from unconditional and irrevocable
financial guarantees of payment of scheduled principal and interest
provided equally by monoline insurance companies, thereby enhancing the
financing to an AAA rating. The Lead Arrangers also provided a CAD 52
million (EUR 37 million) Equity Bridge Loan Facility and interest rate
swaps, which benefit from the same guarantees.
This is the biggest private financing ever raised for a green-field PPP project in Canada to date.