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The Trans Adriatic Pipeline (TAP) successfully completed financial close in December 2018, securing EUR3.9 billion (US$4.44 billion) - the largest project finance agreed for a European infrastructure project in 2018.
TAP will transport natural gas from the giant Shah Deniz II field in Azerbaijan to Europe. The 878km-long pipeline will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.
The financing is provided by a group of 17 commercial banks, alongside the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). Part of the financing is covered by the export credit agencies - bpifrance, Euler Hermes and Sace.
The project raised EUR3,765 million (US$4,288 million) in third party senior debt with a door-to-door tenor of 16.5 years, combining commercial debt along with development financial institutions (DFI) and export credit agencies (ECA) related financing:
Costs have previously been funded in full by TAP’s shareholders: BP (20%), SOCAR (20%), Snam (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).
TAP was advised by Société Générale as Financial Advisor and Allen & Overy as Legal Advisor; lenders were advised by Clifford Chance.
With project financing now concluded, TAP can progress to the final completion of the project and delivery of Shah Deniz II gas in 2020.