Italian banks have provided debt finance for the construction of a hospital near Milan.

Garbagnate Salute, the project sponsor, has raised a total of €39.5mn for its 540-bed hospital. The project finance facility has been provided by Intesa Sanpaolo, MPS Capital Services Banca per le Imprese and Banco Poplare. Banca IMI acts as agent and modelling bank, but not a lender.

The debt is split into two facilities: a base facility of up to €34.5mn and a VAT facility of up to €5mn. The finance has a tenor of 21 years, with maturity coming on 30 June 2034.

The sponsor is a joint venture between Pessina Costruzioni, Carbotermo and Co Ge Costruzioni Generali and has managed to raise a total of €120mn, making this one of the largest value health sector investments in Italy over the past year.
Norton Rose Fulbright advised the banks involved, while Italian law firm CBA Studio Legale advised the borrower.