Pi2 Reaches Financial Close for the New Zaanstad Penitentiary Building

NIEUWEGEIN, The Netherlands, September 30, 2013 /PRNewswire/ --

With the achievement of financial close, the Pi2 consortium - which comprises Ballast Nedam and Royal Imtech - has reached an important milestone, and the penitentiary will now enter construction.

The DBFMO contract with the Government Buildings Agency for the new Zaanstad Penitentiary building was signed on 2 September 2013. Pi2 is responsible for the design, construction, financing and maintenance of the new building, and also has much of the responsibility for the technical facilities for a 25-year period.

Ballast Nedam is the sole shareholder of Pi2. Ballast Nedam (65%) and Royal Imtech (35%) will participate together in the Design, Build, Maintain and Operate phase. The project has a total nominal size of approximately €300 million.

Ballast Nedam has opted for financing based on ING's and NIBC's PEBBLE-Commute structure, consisting of approximately €195 million of debt facilities. Ballast Nedam's advisers were PwC and Allen & Overy.

ING and NIBC are to provide short-term bank debt for the project and have sourced the long term funding needs of the project from institutional investors. Appetite for the PEBBLE-Commute structure was strong, with investors keen to participate in the financing of high quality European infrastructure assets. As one of the first transactions of its kind, the PEBBLE-Commute structure brought together financing sources from the Netherlands, Belgium, France and Germany, ultimately providing best value financing for key Dutch infrastructure.

Ballast Nedam CEO Theo Bruijninckx notes that: "This is an important step in the development of public-private partnership in the Netherlands. The market parties have shown themselves capable of attracting long-term capital through institutional investors. This reinforces our ambitions in integrated projects, which revolve around the best possible life-cycle solution for all stakeholders.' Royal Imtech CEO Gerard van de Aast adds: 'Imtech is delighted that the penitentiary can now enter construction."

Alistair Higgins, Head of Structured Bonds at ING, commented: "The Zaanstad project underscores the commitment of ING to support investment in Dutch infrastructure. By combining institutional investors and banks, value-for-money, long-term flexible financing was achieved for Pi2. A strong pipeline of infrastructure opportunities exists in the Netherlands, and by working closely with institutional investors we can help deliver infrastructure at lower cost for the Dutch taxpayer. We look forward to supporting Pi2 as the Zaanstad project further progresses."

Jeroen Drost, CEO NIBC, comments: "We are happy to have played an important role in making this project possible. It underlines NIBC's longstanding background and expertise in PPPs and our strategy to intensify long term PPP project financing in close cooperation with institutional investors and public organizations. Due to this, the funding base for Dutch PPP projects will substantially increase, which will benefit all stakeholders. NIBC is committed to playing a major role in these new financing structures."

Zaanstad Penitentiary

The Zaanstad Penitentiary will be constructed in the eastern part of the Hoogtij industrial site in Westzaan, and will accommodate over one thousand detainees. The institution will serve initially as both a detention centre and prison. The penitentiary will be future-proof and multifunctional, and the cells will be suitable for multiple occupancy. The penitentiary is scheduled to open in 2016.

Ballast Nedam engages in integrated projects in The Netherlands in four areas of work: housing, mobility, energy and nature. Within this area we focus on the niche markets: industrial construction, offshore wind turbines, secondary raw materials and alternative fuels. In a number of areas of expertise, we also operate internationally. The Ballast Nedam share is included in the Amsterdam Small Cap Index (AScX) of NYSE Euronext.

Ballast Nedam's approach is based on life cycle thinking and acting: we develop, construct, manage and recycle. We are involved in long-term management, maintenance and operation of projects and organize financial feasibility. Our supply and specialized companies deliver competitive edge through innovation, cost leadership and purchasing strength. Ballast Nedam's range of services is shifting towards modular products and specific product-market combinations with greater added value.

Ballast Nedam creates enduring quality combined with lower life cycle costs for its customers and society. http://www.ballast-nedam.com

Royal Imtech is a European technical services provider in the fields of electrical solutions, ICT (information and communication technology) and mechanical solutions. With 29,000 employees, Royal Imtech achieves annual revenue of approximately 5.4 billion euro. Royal Imtech holds attractive positions in the buildings and industry markets in the Netherlands, Belgium, Luxembourg, Germany, Austria, Eastern Europe, Sweden, Norway, Finland, the UK, Ireland, Turkey and Spain, the European markets of ICT and Traffic as well as in the global marine market. In total Royal Imtech serves 24,000 customers. Royal Imtech offers integrated and multidisciplinary total solutions that lead to better business processes and more efficiency for customers and the customers they, in their turn, serve. Royal Imtech also offers solutions that contribute towards a sustainable society - for example, in the areas of energy, the environment, water and traffic. Royal Imtech shares are listed on the NYSE Euronext Amsterdam, where Royal Imtech is included in the AEX Index. http://www.imtech.com