Finance sorted for Vinci in London

Financing has been finalised for an initial £100 million (€125 million) for the contract to repair and maintain the highways network in the Borough of Hounslow, in west London, UK, with French-based Vinci Concessions leading the company that holds the contract.

Hounslow Highways Services, a company owned 50% by Vinci Concessions and 50% by Barclays Infrastructure Fund, was awarded the contract in March, 2012.

This is the first private finance initiative (PFI) contract won by Vinci in the highways repair and maintenance sector in the UK.

The 25.5-year contract covers the upgrade, repair and maintenance of 432km of roads and 763km of pavements.

The project's initial investment will be financed by a bank loan of £88 million (€110 million) with a maximum maturity of 24.5 years from BTMU, KfW and DZ Bank, together with around £20 million (€25 million) in equity from the project company partners.

The total amount of the contract, including service and maintenance, will be about £650 million (€820 million).

Construction, operation and maintenance will be assigned to Ringway, a subsidiary of Eurovia, itself a subsidiary of Vinci, and the works will start in January 2013.