Linklaters has advised Allianz Global Investors Europe and the European Investment Bank (EIB) on the £400m widening and improvement works to the M8, M73 and M74 motorways in Scotland. The project was 50% financed by debt financing provided by the EIB and 50% by a bond issuance wholly subscribed on a deferred payment basis by Allianz Global Investors which has been listed on the Luxembourg Stock Exchange.

The transaction is the largest project to reach financial close under the Scottish Non-Profit Distributing model.  The transaction includes a number of important ‘firsts’ for the UK infrastructure sector since the financial crisis:

    First UK listed project bond to feature a deferred settlement mechanism to mitigate negative carry
    First use of an unwrapped construction phase project bond pari-passu with an EIB loan
    First such investment by a UK pension fund
    First UK Project Bond to utilise a “Monitoring Adviser” for the bondholders

The Linklaters team was led by Bruce White and Julian Davies.