BBVA advises Hermes and Iridium on the refinancing of Eix Diagonal

BBVA Corporate & Investment Banking has acted as sole financial advisor to Federated Hermes, the U.S.-based investment manager, and Iridium, the concession subsidiary of ACS Group, in the refinancing of Eix Diagonal for €288 million

BBVA CIB advised Federated Hermes and Iridium Concesiones de Infraestructuras, S.A., part of the ACS Group, on the refinancing of the Eix Diagonal project in Catalonia.

The transaction, successfully closed for a total of €288 million, was structured through a combination of a short-term tranche, a long-term tranche, and a Debt Service Reserve Facility (DSRF). This structure aligns with the profile of the concession, leveraging the strong market appetite for attractive assets with no construction risk and a long operational track record.

The new long-dated fully amortising capital structure was used to refinance the original senior debt along with the repayment of the junior loan granted by the Government of Catalonia. The asset is a 33-year shadow toll road concession awarded by the Catalan government, with 17 years of concession life remaining until its expiration in January 2042.

Eix Diagonal is now considered a flagship infrastructure asset, comprising a 65-kilometer corridor that connects the cities of Vilanova i la Geltrú and Manresa. It has become a key route for both tourism and strategic transit, serving as an important access point to the Pyrenees and the French border.

With this transaction, BBVA CIB strengthens its position as a leading debt advisor in the infrastructure sector in Spain. As Gaizka Santamaría Pinedo, Executive Director of Corporate Finance for Infrastructure and TMT at BBVA, stated: “This transaction highlights our capabilities and proven expertise in executing complex deals. We are proud to have supported the ACS Group and Hermes Infrastructure in achieving their business goals. For us, it’s essential to stand by our clients and act as their trusted partner, with the specialized knowledge of our teams providing a clear differentiating factor.”