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Highlights

  • Assured Guaranty (Europe) SA guarantees USD 96 million loan supporting A-127 roadway construction in Spain.
  • Loan will fund 38 kilometers of road expansion and renovation across Aragon’s regional road network.
  • Project backed by Acciona Concesiones and Papsa Infraestructuras; arranged with Bankinter, Kutxabank, and Unicaja Banco.

Assured Guaranty (NYSE: AGO) based in Bermuda, provides credit enhancement solutions through subsidiaries like Assured Guaranty (Europe) SA, which focuses on infrastructure and public finance in continental Europe.

The company has announced the completion of a financial guarantee for a €96 million loan extended to Sociedad Concesionaria 5 Villas, S.A. (SC5). SC5 is a concession entity jointly owned by Acciona Concesiones, S.L. and Papsa Infraestructuras S.A., and the financing will support upgrades and expansion of the A-127 roadway in the Aragon region of Spain.

The 23-year, fixed-rate loan carries a coupon of 3.65% and was arranged by Bankinter, S.A., Kutxabank S.A., and Unicaja Banco S.A. Bondholders S.L. will serve as the security agent and financial guarantee trustee. The project falls under the framework of a public-private partnership (PPP) model, with Assured Guaranty (Europe) providing credit enhancement through its financial guarantee.

The loan proceeds will be directed toward two key sections of the A-127 project: the construction of a 24-kilometer road between Tauste and Ejea de los Caballeros, and the full renovation of a 14-kilometer segment between Tauste and Gallur. These improvements form part of the Aragon Regional Road Network Investment Plan, aimed at enhancing infrastructure connectivity and safety in the region.

Raphael de Tapol, Directeur Général of AGE, noted the significance of the financing structure for infrastructure developments within the public-private partnership model in Spain. Raul Serrano, Managing Director at AGE, said the deal underscores the role of guarantees in enabling long-term infrastructure financing and welcomed future collaboration with the partner banks.

AGE is domiciled in Paris and serves as the platform for Assured Guaranty’s financial guarantee business in continental Europe. Legal advisory support for AGE in this transaction was provided by Linklaters LLP across its London and Madrid offices. Kenta Capital acted as financial adviser to SC5. Bankinter, S.A. led the arrangement of the financing.