HOCHTIEF Consortium Reaches Financial Close for Canadian Ring Road

ESSEN, Germany, May 25, 2012 /CNW/ -

• Public-private partnership with 34-year term
• Contract volume of around EUR 1.39 billion (CAD 1.81 billion)
• Contract secured jointly by HOCHTIEF, Flatiron, ACS and Dragados

A consortium around HOCHTIEF Solutions subsidiary HOCHTIEF PPP Solutions North America and ACS has reached the financial close for the Northeast Anthony Henday Drive project in Edmonton, Alberta, Canada. The public-private partnership (PPP) will design, build, operate and partially finance the project at an overall contract value of EUR 1.39 billion (CAD $1.81 billion) over 34 years. Sections of the ring road were built in the 1970s and the 1990s. The current Anthony Henday Drive project began in 2000 with the construction of the southwest section. HOCHTIEF and ACS responded to the procurement process which began in March 2011 and cooperated closely to secure the contract, bringing in other members of the corporate group. The construction work, for instance, is to be carried out by a joint venture which includes group subsidiaries Flatiron and Dragados. HOCHTIEF and ACS each hold a stake of 25 percent in the concession company. Flatiron and Dragados each hold a 33.75 percent share in the construction joint venture.

The PPP project will be financed by the issuance of a bond which has been placed extremely successfully: The CAD $535 million bond issue, which has received an A- rating, was met with great interest on the part of investors and was over-subscribed. In their assessment, the rating agencies particularly emphasized the great experience of the companies concerned in designing, financing and constructing transportation infrastructure projects.

"We are benefiting from the strength and expertise of the alliance between HOCHTIEF and ACS. Together, we can provide most of the services required to fulfill this contract, and that is why the client has selected us. We are thus responsible for another transportation project and are profiting from our corporate alignment," said Dr. Frank Stieler, Chairman of the Executive Board of HOCHTIEF.

The project will include the construction of 27 kilometers of six- and eight-lane divided roadway, nine interchanges, two road flyovers, eight rail crossings (flyovers), and two bridges across the North Saskatchewan River, for a total of 46 bridge structures. Construction will commence in June 2012, with completion of the project scheduled for the fall of 2016.

CIBC World Markets and National Bank Financial acted as joint leads in fully underwriting the CAD $535 million in senior secured project bonds required to fund the Project.

HOCHTIEF is one of the leading international providers of construction-related services. With more than 75,000 employees and a sales volume of EUR 23.28 billion in FY 2011, the company is represented in all the world's major markets. The Group's service offering in the fields of development, construction and operation covers the entire life cycle of infrastructure projects, real estate and facilities. In the USA, the biggest construction market in the world, HOCHTIEF is the No. 1 general builder via its subsidiary Turner and, with Group company Flatiron, ranks among the most important players in the field of transportation infrastructure construction. With its subsidiary Leighton (HOCHTIEF share around 54 percent), the Group is market leader in Australia. Because of its engagement for sustainability, HOCHTIEF has been listed in the Dow Jones Sustainability Indexes since 2006. Further information is available at http://www.hochtief.com/press.

HOCHTIEF Solutions consolidates the core business of the HOCHTIEF Group in Europe and in selected regions worldwide. The company plans, develops, builds, operates and manages real estate and infrastructure facilities. HOCHTIEF Solutions is the management company of the Group's Europe division which employed around 15,000 people around the globe in fiscal 2011. In many regions and segments, the company is a market and innovation leader. Further information is available at http://www.hochtief-solutions.com.

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