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M6 motorway to be refinanced from EIB loan

Representatives of the Hungarian government and M6 Duna Motorway Concession Rt, the company building a stretch of the M6 motorway, signed on Tuesday an agreement on refinancing some €411 million in loans raised to build a 58.6 kilometer section of the M6 motorway, the Ministry of Economy and Transport announced on Wednesday.

The parties will refinance the project with a €200 million loan of the European Investment Bank (EIB) and the proceeds of a €211 million bond issue, organized by Dexia Bank and to be listed on the Luxembourg stock exchange. Both the EIB loan and the upcoming bond will be guaranteed by Financial Security Assurance, the ministry said. The refinancing is expected to result in savings of more than €20 million at current prices, which will be shared in equal part by the Hungarian state and M6 Duna, the ministry said.
Despite a delay, the project has been favorably received by international investors and has been given an investment rating by both Moody's and Standard and Poor's, the ministry said.