From CDP, SACE and BNL BNP Paribas, € 42 million for the development of the international business of Ghella
Press release

From CDP, SACE and BNL BNP Paribas, € 42 million for the development of the international business of Ghella

Cassa Depositi e Prestiti (CDP), SACE and BNL-BNP Paribas have granted to Ghella (a Rome-based construction company) a €42 million term credit facility for the development of its international business.

Cassa Depositi e Prestiti (CDP), SACE and BNL-BNP Paribas have granted to Ghella (a Rome-based construction company) a €42 million term credit facility for the development of its international business.

The six year credit facility consists of a €30 million tranche from CDP, entirely backed by SACE, and a €12 million tranche from BNL. The CDP-SACE tranche is the first "internationalisation" transaction within the Export Banca system, and the first credit facility granted to an Italian company for its development in foreign markets. The transaction is part of the €4 billion plafond made available under the Export Banca arrangement.

The financing package is designed to support the Ghella Group in the awarding process and realisation of foreign projects, which represent the core business of the company. In particular, the credit facility will allow the Italian Group to:

  • participate in bids for international projects, not only in countries where the company has historically operated (mostly in Latin America), but also in new markets, such as the Middle East, Eastern Europe and Australia; and
  • invest in machinery and infrastructure for the completion of foreign contracts already in its portfolio, including those relating to an aqueduct and a motorway project in the Dominican Republic, the extension of the Athens metro to Piraeus and two major infrastructure projects in Argentina.

The transaction involved CDP as lender, SACE as guarantor and BNL-BNP Paribas as lender, agent and structuring bank. The Milan office of global law firm DLA Piper advised on the legal aspects of the transaction.

 

 

Rome, 24 September 2012

 

Ghella is one of the major construction companies in Italy, having a turnover in 2011 of approximately € 650 million, of which approximately 80% was made abroad; this demonstrates the international focus of the Group. Established in 1894, over the years Ghella has increased and diversified its expertise, implementing important infrastructure projects in Italy and abroad, with a particular focus on Central and South America. In the negotiation of the financing transaction, Ghella was represented by its CFO, Mr. Marco Tummarello.

Cassa Depositi e Prestiti is a stock company controlled by the Italian State, which administers postal savings, representing a relevant proportion of total Italian savings, and uses these savings in accordance with its mission of sustaining the growth of the Italian economy. It is the leader in financing the investments of the Italian Public Administration, promoting infrastructural development and is one of the main players in sustaining the Italian economy and enterprises.

SACE offers export credit services, credit insurance, protection of investments carried out abroad, financial guarantees, bonds and factoring. Having insured transactions for a value of € 70 billion in 180 countries, the SACE Group supports the competitiveness of enterprises in Italy and abroad, guaranteeing a more stable cash flows and transforming the risk of insolvencies in development opportunities.

BNL, established in 1913, is one of the major banking groups in Italy, and one of the most well-known brands in Italy. Having more than 1,000 branches in Italy - agencies, Private Units, Enterprises Units "Creo per l'Imprenditore", Corporate Units and Public Administration - BNL offers a wide range of traditional and innovative products and services for the benefit of its clients (individuals, families, enterprises and Public Administration). BNL became part of the BNP Paribas Group in 2006.

BNP Paribas is present in more than 80 countries, with more than 200,000 employees, of which 160,000 are located in Europe. BNP Paribas operates also as a retail bank in Belgium, France, Italy and Luxembourg. It plays a leading role in three big areas: Retail Banking, Investment Solutions and Corporate & Investment Banking. Within BNP Paribas Corporate & Investment Banking, the Export Finance group focuses on structuring and managing financing transactions backed by Export Credit Agencies, with the support of approximately 130 professionals located in 20 countries.

DLA Piper is one of the major global law firms, being present in 31 countries, with 77 offices and more than 4,200 lawyers worldwide. In Italy, DLA Piper has 163 lawyers operating out of offices in Milan and Rome. This transaction was followed by DLA Piper's export finance practice, led by Mario D'Ovidio, with assistants Alessandro Dardano and Michele Parlangeli.

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