The amount will be put together by a special-purpose vehicle company, the capital of which will be held by the Infrastructure Fund of the SEIEF Group (Southern European Infrastructure Equity Finance), of which Dexia is a shareholder, and CAF (Construcciones y Auxiliar de Ferrocarriles), the train supplier.
Metro de Madrid will acquire the rolling stock through a 17-year operating lease, which also includes the maintenance of the trains, worth €200 million.
The operating lease will be financed by the Community of Madrid (52 percent) and the Madrid Town Council (48 percent).
Dexia Sabadell is 40 percent held by Banco Sabadell, a Spanish bank, while the Dexia Group owns the remaining shares.
The contract involves 45 wide gauge trains (234 cars) and 15 narrow gauge trains (68 cars) – half of which will replace older trains , while the rest will supplement new extensions on the network.
They are expected to be manufactured within 22 months, in order to be incorporated into the metro network by mid-2010.
In 2006 Dexia was responsible for the largest metro finance deal ever put together in Spain, worth €1.2 billion.
Madrid’s metro network is used by 2.5 million passengers daily, and has benefited from major upgrades in the last year. Metro de Madrid had not done any off-balance-sheet financing until 2006 – everything before was on a public-procurement basis.
Last December Metro de Madrid closed another €400 million fully-structured facility – which the transport company treated as a 15-year off-balance-sheet lease – that refinanced a number of trainsets previously purchased by the transport body.
Jason T Hesse