TAP successfully completed financial close in December 2018, securing €3.9bn, the largest project finance agreed for a European infrastructure project in 2018.
The financing is provided by a group of 17 commercial banks, alongside the EBRD and the European Investment Bank (EIB). Part of the financing is covered by the export credit agencies – bpifrance, Euler Hermes and Sace.
The project raised €3765M in third party senior debt with a door-to-door tenor of 16.5 years, combining commercial debt along with development financial institutions (DFI) and export credit agencies (ECA) related financing.
EIB Direct Facility, benefitting from a guarantee from the European Union under the European Fund for Strategic Investments EFSI: €700M, EBRD A-Loan: €500M, EBRD B-Loan: €500M funded by commercial banks. ECA facilities, benefiting from comprehensive cover by: Bpifrance Facility, €450M. Euler Hermes Facility, €280M. A SACE Facility, €700M and Commercial term loan facility: €635M directly provided by commercial banks without any ECA or multilateral involvement.
Costs have previously been funded in full by TAP’s shareholders: BP (20%), SOCAR (20%), Snam (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).
