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SMBC acts as MLA for the first Danish PPP road project
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SMBC has acted as mandated lead arranger (MLA) in the first Danish road project realised as a public private partnership (PPP).
SMBC, along with five other banks and the Kliplev Motorway Group (KMG), successfully closed DKK1.2 billion (€162m) debt facilities for the financing of the M51 motorway in southern Denmark.
The project, which involves the construction and operation of a 26km stretch of the M51, will run from Kliplev to Sønderborg and include 18km of side roads and seven interchanges. The KMG consortium is comprised of companies belonging to the Strabag SE construction group.
Upon completion of construction, the KMG consortium will receive compensation payment covering the construction costs by the Danish Road Directorate (DRD), which will enable full repayment of the debt facilities after two and a half years. Thereafter, the KMG consortium will operate the road for 26 years, receiving availability payments from the DRD during that period.
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