Autovie Venete SpA CDP and EIB financing under the Juncker Plan - - PowerPoint PPT Presentation

CDP and EIB financing under the Juncker Plan framework

Autovie Venete SpA

April 27th, 2018

The Concession

▪ SpA Autovie Venete is the concessionaire of several motoways sections in the North-east of Italy (incl. A4 Venezia- Trieste, A28 Portogruaro-Pordenone-Conegliano and A34 Villesse Gorizia) for a total network length of 210 km ▪ SpA Autovie Venete is controlled by the Friuli Venezia Giulia Region (72.9%), minority shares are held by the Veneto Region and private sector investors ▪ The concession is based on a “Regulatory Asset Based” (‘RAB’) tariff, updated from time to time and aimed at ensuring a defined return on invested capital ▪ The concession agreement expired on March 31st, 2017 ▪ In January 2016 the Ministry of Infrastructure and local authorities (Regione FVG and Regione Veneto) signed an MoU aiming at awarding the new concession - under terms and conditions to be defined - to an In-House entity to be selected

Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 2

The Project

▪ A4 Venezia-Trieste is part of the Trans-European Networks – Transport (TEN-T) - Corridor 5 (Barcellona-Kiev, incl. Venezia, Trieste, Lubiana and Budapest) ▪ Starting from 2008, SpA Autovie Venete operates in the context of an emergency status declared by the Italian Government with respect to the traffic congestion and road practicability in the axis “Corridor V” of the A4 motorway. ▪ Main investment: A4 (Venezia-Trieste) widening – 3rd Lane, a 95 km section included in the list of strategic infrastructures of national interest. ▪ Total Investments of € 1.6 bn; of which € 0.64 bn completed and € 0.96 bn under construction / to be procured.

Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 3

The Project

14/05/2018 Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 4

TEN-T Corridors

5

The Project

Vehicles/Km 1997-2016 [Source: SpA Autovie Venete] 2015 AADT [Source: SDG]

Historical Traffic performances

The Project

14/05/2018 Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 6

The A4 widening

Challenges

▪ Need to ensure sources of funding for the completion of the urgent investments (€0.96) to be completed within 2022

Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 7

▪ Long term funding needs ▪ Concession agreement close to expiry ▪ Uncertain timing, terms and conditions of the awarding of the new concession

8

CDP / EIB Solution

1 European Fund for Strategic Investments: guarantee to the EIB Group for the initiatives related to the Investment Plan for Europe

• The first political economy instrument – coordinated at

European level – designed to sustain growth from the demand side

• Boosting investments, sustaining economic growth

and creating new jobs

• More efficient use of EU funds and coordination

between the EIB Group and NPBIs

• Public contributions to the Plan do not increase

Member States’ public debt

Main goals 3 «Pillars» and 3 instruments

Mobilising finance for investment

1 2 3

Improving project preparation Improving the investment environment Credit enhancement to EIB Group through EFSI1 (Infrastructures& Innovation and SMEs) Visibility and technical assistance through the «Advisory hub» and the «Project Portal» Structural reforms and removal of regulatory barriers

1 2 3

The Investment Plan for Europe: main goals and pillars

EFSI Regulation expressely foresees NPBs to play a prominent role in pursuit of EFSI objectives, to act as catalysts for private finance and address market failures

9

Same Leverage effect 5x 15x 3x

EFSI 1.0 ▪ EC: € 16 bn ▪ EIB: € 5 bn € 252 bn: external multiplier ▪ € 43 bn: NPBIs (CDP contribution ca. € 8 bn including ca. € 5 bn already approved) ▪ € 209 bn: other capital from the private sector € 42 bn: internal multiplier additional resources EIB Group

Target: mobilizing at least € 315 bn of additional finance at market conditions at European level in order to invest in strategic, solid and substainable projects through EFSI

Data in €/bn

EFSI 2.0 ▪ EC: € 26 bn ▪ EIB: € 7.5 bn € 402 bn: same multiplier ▪ € 252 bn from EFSI 1.0 ▪ € 150 bn crowding-in of additional resources from both public and private sector € 67 bn: same multiplier additional resources EIB Group

345 IIW 157 SMEW 240 IIW 75 SMEW

From July 2015 to June 2018 Up to 2020

21 63 315 33 100 500

CDP / EIB Solution

The European Fund for Strategic Investments - EFSI

10

Large Infrastructure Investment Platform Large (> € 250 m) infrastructure projects in Ten-T, Ten-E, Broad Band and Social Infrastructure

Equity Debt

New Investment Platform under development dedicated to small infrastructure projects (€ 20-200 m)

EFSI

Investment Platform

MoF

Private sector

Financing Guarantees

Main features

▪ CDP and EIB jointly evaluate the Project with the aim of identifying the most suitable financial structure to finalize the

• peration

▪ CDP and EIB finance the Project in parallel: the Platform allows maximum degree of freedom, with respect to the procedures of engagement and position of relative seniority ▪ The private sector will contribute with the equity component of the project and with a further component of debt through financial intermediaries

CDP / EIB Solution

The Large Strategic Infrastructure Investment Platform

EIB/CDP Solution

▪ Negotiation with the Granting Authority of satisfactory terms and conditions for the operation during the «interim period» (i.e. from the current concession term until the effective date of the new concession)

Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 11

PRESERVED INVESTMENT CAPACITY DESPITE REGULATION UNCERTAINTIES

▪ Long term financing (maturity up to December 2031) ▪ Adequate repaiment mechanisms to manage future project evolution ▪ Management of the Termination amount’s payment risk

Contractual framework

Contenuto confidenziale - Proprietà di CDP Cassa Depositi e Prestiti 12

50% CDP 50% EIB

€ 600 m Financing

EFSI

European Fund for Strategic Investments

Intercreditor Agreement Guarantee Potential Guarantee Financing Agreement

Autovie Venete SpA

Ministry of Infrastructure (Grantor)

Concession Agreement Toll Revenues Toll Revenues under new concession Termination Payment

NewCo

New Concessionaire

Users Users

New Concession Agreement

Thanks for your kind attention