247 million from EIB, CDP, Unicredit and SACE for modernisation and safety on A32 Motorway

The European Investment Bank, Cassa Depositi e Prestiti, UniCredit, SACE and Società Italiana per il Traforo Autostradale del Frejus S.p.A (SITAF) have concluded an agreement for the provision of a total of € 247 Million for modernisation and safety on the A32 Motorway connecting north-western Italy with France via the Frejus tunnel (T4).

The A32 is one of the Europe’s key road arteries and an integral part of the Mediterranean Corridor of the Trans-European Transport Network (TEN-T)

In concrete terms, the EIB has granted a direct loan of around € 105 million to SITAF (ASTM Group). In addition, CDP has provide € 92 million and Unicredit € 50 million (totalling € 142 Million), benefiting from EIB funding. Around € 80 million of the EIB financing and €40 million of the CDP credit lines are covered by a SACE guarantee. CDP and Unicredit have also acted as SITAF’s structuring and coordinating advisors for the overall structuring of the project finance-based loan. This financing comes in addition to the € 320 million provided in 2013 for the construction of the second T4 Tunnel, which is expected to open by the end of 2023.

This operation will enable ISTAF to make a series of investments to improve road safety and modernise the main bridges, viaducts and tunnels along the 80 Km of the A32 motorway.

The investment plan also covers actions to expand smart transport systems and travel services, the replacement of lighting systems with LED technology and the renewal of noise barriers. Overall, the project will make motorway infrastructure safer and more resilient to extreme weather events.

UniCredit has also acted as hedging bank and financial advisor to the borrower for the deal

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