The combination of a strong concessions business – particularly roads where revenue was up 4% to Eu4.3 billion in 2010 – and expanding contracting expertise pulled in Eu34.8 billion of revenue last year for Vinci, up 9%, and has left the company with an order book of Eu27.3 billion at 31 December 2010, again up buy 14%

Vinci has grown its international presence and strengthened its technological expertise in contracting through targeted acquisitions: Soletanche Bachy in foundation technologies, Entrepose Contracting in the oil and gas sector, Nuvia in nuclear services, ETF in rail works and Tarmac in quarries. Synergies between the concessions and contracting businesses, and the growing breadth of those businesses, have brought success in a number of high-profile infrastructure concession tenders and financings.

Vinci is shortlisted for the Eu600 million French Ministry of Defence HQ PPP, a preferred bidder for which will be appointed on 28 February. Vinci is also lead sponsor in the LGVSEA consortium, which is likely to close the financing for the Eu7 billion Tours-Bordeaux high-speed rail PPP concession some time this year. And Vinci Concessions recently signed the 55-year concession to build the Eu450 million Notre-Dames-des-Landes airport in Nantes with concession grantor the French general Department of Aviation.

The sponsor is also very near to financial close, along with co-sponsors Caisse des Depots and SEIEF, on the Nice Olympic stadium project – a Eu166 million 30 year PPP concession – with BBVA, Societe Generale, Credit Agricole and SMBC expected to back the scheme, and possibly financial adviser HSBC taking some of the debt.

Vinci’s most notable financing of last year was GSM-R (see Deal of the Year Awards page 44). The deal hurdled some significant obstacles including limited liquidity following the financial crisis, the insolvency and drawn-out sale of its equipment supplier Nortel, and complex intercreditor negotations. Nevertheless, the Eu600 million 14-year commercial debt (lead arranged by Credit Agricole CIB, BBVA, Santander, KfW, BayernLB, Dexia, Credit Agricole Leasing and SMBC) reached financial close, and at a competitive margin – 250bp over Euribor, rising to 275bp post-construction (at 4.5 years) and rising to around 300bp between years nine and 14 – given the lending climate and last minute resolution of issues that had plagued the deal for four months before close.

Another major transaction of 2010, and one which, like GSM-R, was shortlisted for a deal of the year, was the financing for the first stretch of the Moscow-St Petersburg highway PPP. Signing of the concession contract took place on 26 April between the Federal Road Agency and the Vinci/ N-Trans North West Concession Company, and loan docu­mentation was signed with Sberbank and development bank Vnesheconombank.

The total cost of the project is RUB65 billion ($2.23 billion) which includes equity of RUB8.5 billion and RUB23 billion roubles from the state investment fund. The project debt comprises RUB10 billion rouble, 20-year bonds, split into two equal tranches, guaranteed by the state. The return on the bonds varies depending on inflation. VEB and Sberbank are providing 33.7 billion roubles 50/50, split between a 20-year term loan of 29.2 billion roubles and a VAT facility of 4.5 billion roubles.

The deal was one of the pathfinder PPP financings in Russia and is a major coup for Vinci which is now in a strong postion to tender for future Russian PPP offerings.