Global law firm DLA Piper advised Rudina and the sponsors of the Rūdninkai Military Town project on the signing of financing arrangements for part A of stage II of the development. Rudina is indirectly managed by the INVL fund ‘INVL Defence Infrastructure Fund I’, together with the construction companies Conres and Fegda.
The financing arrangements comprise EUR200.75 million of project finance debt to be provided by the European Investment Bank and Swedbank in support of the development of military infrastructure for the permanent deployment of the German Brigade in Lithuania.
Part A of the project’s phase II covers construction work in a 52-hectare area, where 27 buildings adapted for the army’s needs will be built, with a total area of almost 94,000 square meters. The territory is planned to feature a parade ground, squares for vehicles and military equipment and a helicopter zone.
The signing of the financing arrangements represents a significant milestone for the project and follows the satisfaction of a number of key development and due diligence workstreams.
The DLA Piper team advising on the transaction was led by partners Nikhil Markanday and Maria Pereira. Legal director Mark Valenzia led the project financing workstream, supported by associates Victoria Walsh, Raluca Padure and Jessica McArthur. Advice on the hedging arrangements was led by partner Mark Dwyer and senior associate Umah Kathirgamathamby, supported by legal director Jennifer Jin and senior associate Xi Chen.
Nikhil Markanday commented: “We are delighted to have supported on this strategically important transaction. The project will deliver critical infrastructure and demonstrates the ability of public and private sector stakeholders to work together to support critical infrastructure in the defence sector.”
Maria Pereira, International Head of Defence Sector, added: “The Rūdninkai Military Town project is one of the most significant defence developments in the region. Alongside the sponsors, project company and adviser teams, we have supported the advancement of a project that will underpin Lithuania’s long-term infrastructure and security ambitions.”
