(Finance) – The operation of green refinancing in favor of the company SPV Linea M4 SpA., concessionaire of the Municipality of Milan, main shareholder together with ATM for the construction and management of the M4 line of the Milan Metroby a pool of nine financial institutions made up of BPER Banca SpA, Banco Bilbao Vizcaya Argentaria SA, Banco BPM SpA, BNP Paribas, CaixaBank SA, Cassa Depositi e Prestiti SpA, Crédit Agricole Corporate & Investment Bank, Intesa Sanpaolo SpA and Société Générale SA, who granted the Company a maximum amount of 398 million euros.
There agreed financial structure – explains a note – allows the achievement of advantages both for the company, in terms of lower average cost of the debt and lengthening of the repayment plan, and for the members in terms of savings on concession fees destined for the Concessionaire and a growth in return on investment and enterprise value of the company. The operation also allows the release of previous guarantee commitments on the work provided by the Ministry of Economy and Finance for 276 million euros.
The Company was assisted by financial advisors Arcus Financial Advisors Srl, Intesa Sanpaolo, CDP and BNPP, by Sustainalytics for ESG aspects while as legal advisor by EY – Studio Legale Tributario, with a team led by the partner Oriana Granato and composed of the senior associates Valeria Baronchelli and Chiara Donadi and the junior associate Giovanni Maria Fraschini. The Municipality of Milan was assisted by KPMG Advisory for the financial aspects and by Chiomenti as legal advisor, with a multidisciplinary team led by partners Marco Cerritelli and Filippo Brunetti, supported in the task by counsel Alfredo Vitale and associates Giulia Alessio, Chiara Tortorella and Lorenzo Forleo. For ATM the economic-financial aspects were handled by Patrizia Samoggia, director of administration, finance and control, while the legal aspects were handled by Micaela Vescia, director of legal and corporate affairs, with Alessandra Gilio, head of corporate consultancy and extraordinary operations. The pool of banks was assisted by the advisors Arup Italia SpA, Marsh SpA and PwC and by the Legance law firm with a team led by the partner Monica Colombera and composed of the counsel Alfredo Fabbricatore and the associates Giulia Simili and Alessia Lamedica.
“We are pleased to announce the conclusion of the green refinancing operation of line 4 of the Milan Metro, a significant milestone, also achieved with the essential support of M4’s internal offices and in particular of our CFO Dr. Federica Caimi – declares Alessandro Lamberti, president of M4 SpA – for our company and for the construction of line 4 of the Milan Metro. Thanks to this operation, we can guarantee our members savings on concession fees and an increase in business value, thus supporting our commitment towards a future of sustainable and innovative mobility for the city of Milan.”
“The refinancing operation conducted by M4 – he comments Emmanuel Conte, councilor for financial, economic and patrimonial resources of the Municipality of Milan – confirms and relaunches the Administration’s objectives in terms of efficiency and sustainability, both environmental and economic, further enhancing the choice, made a year ago, to make a strategic infrastructure for the city totally public. In a public finance context characterized by uncertain balances and structural limits, we note the benefits of a governance that has made it possible to reduce the burdens for society, increase the profitability of ATM shares and reduce the fee paid by the Municipality, with a relief important for current spending. A virtuous overall strategy also made possible by the reliability, competence as well as experience of M4 and Atm. And so now we have a new metro line that connects the city from east to west and allows you to reach Linate airport in a few minutes, confirming, on the one hand, the political choice not to increase travel ticket rates and on the other, the objective of responding to the mobility needs of the citizens of Milan and throughout Europe”.
“With the closing of the operation for the acquisition of 31% of ATM shares, it increases its stake in M4 – he declares Arrigo Giana, CEO of Atm – with the aim of strengthening the management and efficiency of the public transport network. An important investment that allows the development of significant operational synergies for an improvement in the management of costs and resources to further promote mobility in Milan”.