Herbert Smith has advised the Haramain High-speed Rail (HHR) Consortium, which was recently awarded the contract to build the high-speed railway between Medina and Mecca, on its guarantee facility agreement with a syndicate of Spanish banks.
The banking syndicate is comprised of the following Spanish banks, which granted guarantees for a maximum amount of 3.039 billion Saudi Arabian Riyals (equivalent to €664 million at the current exchange rate) to the HHR Consortium: Banco Bilbao Vizcaya Argentaria (BBVA), Banco Espaňol de Crédito (Banesto), Banco de Sabadell, Crédit Agricole Sucursal en Espaňa, CaixaBank and Deutsche Bank, Sociedad Anónima Espaňola.
The transaction involves guarantees being provided to the Saudi Railways Organization by The Saudi British Bank (SABB) and Deutsche Bank AG Riyadh Branch, acting as reissuing banks on behalf of the syndicate of Spanish banks and the HHR Consortium.
The HHR Consortium is comprised of 12 Spanish companies, led by state rail operator Renfe, the state rail network operator Adif and rolling stock manufacturer Talgo, together with technology, engineering and construction companies Indra, OHL, Cobra, Dimetronic (Invensys), Consultrans, Imathia, Copasa, Ineco and Inabensa, as well as Saudi companies Al Shoula and Al Rosan. Herbert Smith is advising the consortium on all legal aspects of the project, which is one of the largest international contracts ever won by Spanish companies.
Madrid partners Miguel Riaño, coordinating the advice on all legal aspects of the project, and Gonzalo Martín de Nicolás led the Herbert Smith team, assisted by partner Alberto Frasquet and associatesGuillermo Uriarte,Alejandro Alberte and Armando García-Mendoza.
Gonzalo Martín de Nicolás comments:
“We are delighted to have advised the HHR Consortium on this facility agreement, and to continue to work with them on this landmark project which is a fabulous opportunity for the Spanish companies. Given the current economic climate, the fact that the consortium was able to obtain the banks’ support is a clear sign of the strength and credibility of the Spanish railway sector. This project could well prove to be a door to other railway projects led by Spanish companies in the Middle East and Asia in the future.”
