Firm leads sale to finance Venice superhighway

Jan 03, 2018

J.P. Morgan led a EUR 1.5 billion bond transaction to finance a new superhighway in the Veneto region, the third landmark transaction of 2017 for the firm in Italy.

It follows the EUR 13 billion equity raised for bank UniCredit and the EUR 2.6 billion IPO for Pirelli, both of which set new records for Europe in 2017. The Pedemontana Veneta, a new toll road that stretches 100 miles, will help reduce congestion on roads north of Venice and Verona. It is one of the largest ever bonds issued in Europe for a “greenfield” project, or where no previous infrastructure existed.

“We knew the sale would be challenging but structured in the right way, we were confident it would raise interest,” said Andrea Colombo, who leads the Debt Capital Markets team for Italy.

The deal was structured in two tranches to provide the client with full financing for the project from day one and to offer long-term investors a measure of protection from the risks associated with construction.


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