PLMJ is advising the financiers of the first section of Portugal's high-speed rail link

The operation took several months to negotiate and was one of the largest investments ever made.

The concession contract for the public-private partnership (PPP) project for the first section of the high-speed rail link between Porto (Campanhã) and Oiã was signed this week, with PLMJ advising the project's financiers.

The project is one of the largest investments ever made in Portugal, worth €2.3 billion. Funding was secured from the European Investment Bank and a group of diverse institutions, including Portuguese institutions such as Novo Banco, Millennium BCP and Caixa Geral de Depósitos, as well as Caixa BI. Funding also came from international banks such as Natixis Corporate & Investment Banking, BBVA, La Banque Postale and Deutsche Bank. Besides the banks, there were also insurance companies including Canada Life, MetLife, Manulife, MEAG and LBP AM. For many of these institutions, this was their first operation in Portugal.

The PLMJ team worked with Herbert Smith Freehills Kramer. The team was led by Pedro Siza Vieira and Maria Zagallo, partners in the Banking and Finance and Public Law practices, respectively. The transaction involved more than a dozen PLMJ lawyers and took several months of negotiations. These included Luís Miguel Vasconcelos, a managing associate in the Banking and Finance practice, and Pedro de Almeida Fernandes, an associate from the same practice. The Corporate M&A and Tax practices were also involved.

Pedro Siza Vieira: "This was an exceptionally complex transaction due to the size of the investment, the number of parties involved, and the diversity of the financing structure. There were various categories of creditors with different disbursement and repayment profiles and interest rates. This is the first time in our country that a project combining European Union structural funds with financing from the EIB, commercial banks, and insurance companies has been signed. It is also the EIB's largest financing for a single project in the railway sector, as well as being the largest infrastructure project in our country. It is very satisfying to contribute to an investment that will have a tremendous impact on the country, decisively contributing to territorial cohesion and the competitiveness of our economy."

Maria Zagallo: "Projects like this require multidisciplinary teams with solid experience, as well as rigorous management of issues, deadlines and people. These are the projects that challenge us and require out-of-the-box solutions, and it is in these projects that we really feel we are making a difference. It is the culmination of months of intense work, but above all, it is the start of something transformative for the country. PLMJ is proud to be part of this effort. I know this will always be a milestone in the memory and careers of all our lawyers, who have given their all."