The €1.4bn project bond to finance the Castor underground gas storage facility in Spain underlined the market innovation designed to meet Europe’s €2-trillion need for new infrastructure by 2020, according to Allen & Overy.
The Castor underground gas storage facility is jointly owned by Spanish construction company ACS and Canadian oil and gas company Dundee Energy. The facility will provide a 1.9bcm strategic reserve (1.3bcm of useful gas) for the Spanish gas system, representing a 30 per cent increase in Spain’s current underground gas storage capacity.
The European Investment Bank has said it is hopeful the project bond initiative would establish itself as ‘a new asset class providing diversification and a strong credit rating’.
Allen & Overy advised Banco Santander, which acted as global co-ordinator. The law firm’s team was led by partners Charles Poole-Warren in Spain and Tim Conduit in London, with assistance from partner Ignacio Ruiz-Cámara and associates Adam Abdel-Aziz, Pablo Rodríguez, Tom Constance, Jean-Baptiste Gaudin and Peter Redo.
Partners Henri Wagner and Frank Mausen and associate Pierre-Henry Maroteaux from Allen & Overy’s Luxembourg office were also involved.