Allianz Global Investors (AllianzGI) has completed a restructuring of the financing arrangements of the public-private partnership road project in Northern Ireland known as DBFO2.
DBFO2, which began construction in 2007, is a GBP250 million project responsible for 38km of brand new road in Northern Ireland, including 12km of new road on the A1 bypassing Newry and four new junctions, completing the upgrade to dual carriageway of the road from Belfast to Dublin. To the west of Belfast, the project is responsible for over 20km of the A4 from Ballygawley to Dungannon.
The project includes a 27 year maintenance period.
AllianzGI has acquired all of the bonds issued by Amey Lagan Roads Financial, with a nominal face value of approximately GBP130million. AllianzGI acquired the bonds on behalf of its clients, a group of third party investors that include UK pension funds and other Allianz group entities. As part of the transaction, AllianzGI has helped arrange a restructuring that will improve the financial position of the issuer and its debt.
Paul David, director of infrastructure debt at AllianzGI, says: “We’re pleased to have been part of this sophisticated restructuring, a transaction that is good news for our investors, the public authorities and also the issuer. Our portfolio of recent transactions gives project sponsors confidence in dealing with us across the infrastructure lifecycle, opening up exciting project opportunities, like this, for our clients.
“This restructuring puts the DBFO2 project, one of significant importance to the local community, on a sound financial footing. Road projects like this, and the M8, M73, M74 Scottish motorway improvements project we recently invested in, give institutional investors access to the long term, secure cash flows they need to match their equally long term liabilities.”
