Herbert Smith Freehills Kramer advises lenders on financing for first tranche of Porto-Lisbon high-speed rail link

Leading global law firm Herbert Smith Freehills Kramer has advised the lenders, comprising the European Investment Bank, commercial banks, insurance companies and infrastructure investment funds, on the greenfield project financing of the first section of the new highspeed rail line between Porto and Lisbon. The project is being developed on a public-private partnership (PPP) basis, under a design, build, finance and maintain (DBFM) model.

This is the inaugural PPP launched by Infraestruturas de Portugal (the state-owned company responsible for all Portuguese rail and road infrastructure) for the development of an entirely new highspeed rail network, which in its first phase envisages lines connecting Porto to Lisbon, Porto to Vigo, and Lisbon to Madrid.  

With a total investment of over €2.3 billion and a debt package of around €1.8 billion, the project financing for this first section of the Porto-Lisbon line is alone the single largest project financing ever made in Portugal. Underpinning it is a complex multisource and multi-ranking financing structure, comprising various facilities (including both regular loan and notes issuance facilities) with varying lender profiles and lending terms. The section will stretch for 71 kilometres and includes a new bridge over the Douro River, a new station in Gaia and a new terminal at the Campanhã station in Porto.

The project is being implemented by the Lusolav consortium, which brings together a group of Portuguese construction companies led by Mota-Engil and private capital investor Serena Infrastructure Partners.

The Herbert Smith Freehills Kramer team was led by partner Matthew Job and of counsel Edgar Monteiro. The wider team included Will Nevin, Heather Culshaw, Nick May, William Breeze, Amy Geddes, Hannah Ambrose, Rowena van de Grampel, Thomas Papworth, Alex Shindler-Kelly, Owen Roberts, Vladi Resnik, Matthew Oliver, Olga Dementyeva, Rohy Alsaad, Amaryllis Tian, Konstantin Korennoy, Dammy Sokale, Eni Owolabi, Max Howard, Sarah-Anne Butler, Jenny Seong, Serena Pennant, Aba Amponsa, Cordelia De Mitry and Lauren Burke. 

The firm partnered with PLMJ, a leading independent law firm in Portugal, for structuring and local law advice.