HSBC and Leumi to provide USD1.1 billion in financing for Tel Aviv Purple Line
Categories: Banking & Finance, Projects & Energy
Israel has secured €1 billion (USD 1.1 billion) in financing from UK banking giant HSBC and Israel’s Bank Leumi to start building an overground light rail line in the greater Tel Aviv area.
HSBC and Bank Leumi will provide the consortium – made of Israel’s Shapir Group and Spain’s CAF (Spain) – that has won the tender for planning, designing and building the purple light rail line, with €1 billion in financing, according to a joint statement by the Finance Ministry and the Transportation Ministry. The funding structure shall also include, for the first time in PPP projects in Israel, a loan backed by the Spanish export credit agency, Cesce.
Firon Law Firm represented the Concessionaire (owned 50% by CAFIP and 50% by Shapir Civil and Marine Engineering Ltd.) in this complex transaction.
