International law firm Herbert Smith has advised the Haramain High-speed Rail (HHR) Consortium, which is contracted to build the high-speed railway between Medina and Mecca, on a 3.039 billion riyal ($810 million) guarantee facility agreement with a syndicate of Spanish banks.
The HHR Consortium consists of 12 Spanish companies, and is led by state rail operator Renfe, 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, in addition to Saudi companies Al Shoula and Al Rosan.
Herbert Smith is advising the consortium on all legal aspects of the project; one of the largest international contracts ever won by Spanish companies.
Madrid partners Miguel Riaño and Gonzalo Martín de Nicolás led the Herbert Smith team, assisted by partner Alberto Frasquet and associates Guillermo Uriarte, Alejandro Alberte and Armando García-Mendoza.
“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,” said Martín de Nicolás.
The banking syndicate comprises of Banco Bilbao Vizcaya Argentaria (BBVA), Banco Espaňol de Crédito (Banesto), Banco de Sabadell, Crédit Agricole Sucursal en Espaňa, CaixaBank and Deutsche Bank, and Sociedad Anónima Espaňola. Clifford Chance advised the banking syndicate on the deal.
Shaheen Pasha is Middle East Regional Editor at ALB. Follow us on Twitter: @ALB_TheBrief.
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