Italy signs World Cup construction deal in Russia
VTB Bank has received a €500mn export financing package for the development of an infrastructure complex by Italian construction firm De Eccher, ahead of the 2018 World Cup in Russia.
The package is divided into three financing agreements, with Intesa Sanpaolo acting as the sole agent. A loan of €276mn is provided by Italian bank Cassa Depositi e Prestiti (CDP), and 100%-covered by the country’s export credit agency, Sace. Another €208mn will be disbursed by Intesa SanPaolo, Société Générale and KfW Ipex-Bank, all acting as mandated lead arrangers, with Sace insurance on 95% of the sum. The remaining €22mn is extended by Intesa SanPaolo and Société Générale, who also acted as mandated lead arrangers on this tranche.
The facility will be used for the development of the VTB Arena Park, a complex of hotels, apartments and offices around Dynamo Moscow’s stadium, in preparation for the 2018 World Cup. It is the first time that CDP has participated in a co-financing project with commercial banks as part of Export Banca, an export support scheme signed by CDP and Sace.