TPER's path towards Energy Transition and Sustainable Mobility
Fostering the transition to green and sustainable mobility is a fundamental prerequisite for the economic growth of the whole country, in line with the goals of the NRRP.
Head of IMI CIB Italian Network, IMI Corporate & Investment Banking Division
We continue to invest for strengthening our role as an active player in an integrated and intermodal mobility ecosystem.
Chairman and Chief Executive Officer, TPER
THE BACKGROUND
TPER (Trasporto Passeggeri Emilia-Romagna), established in 2012 from the merger of the transport branches of ATC and FER, is one of the main passenger transport operators in Italy and the largest company in Emilia-Romagna in terms of numbers and service volumes in the public passenger transport sector.
Holding shares in 13 companies mainly operating in the passenger and freight transport sector, TPER is the strategic player of reference in public transport throughout Emilia-Romagna.
TPER has recently approved an ambitious intervention plan for the 2023-2026 period, largely covered by public grants from various sources, including the NRRP, for a value of about EUR 430M, aimed at decisive progress in terms of both environmental protection and efficiency and reliability.
In order to secure the financial backing to fully cover its development plan over the medium-long term, TPER launched a non-binding beauty contest with the banking system, at the end of which three different solutions were identified:
- A 4-year EUR 65M revolving credit facility (RCF) to advance plant grants to cover investments. The RCF has been allocated to a pool made up of Intesa Sanpaolo, Cassa Depositi e Prestiti and BPER for EUR 20M, EUR 25M and EUR 20M respectively.
Intesa Sanpaolo, IMI Corporate & Investment Banking Division, acted as Lead Manager, Mandated Lead Arranger, Agent Bank and Sustainability Coordinator. - A EUR 15M medium-long term loan (8 years), 80% guaranteed by SACE green, awarded exclusively to Intesa Sanpaolo, to finance the company's share of bus investments.
- A EUR 12M medium-long term loan (10/12 years), 80% guaranteed by SACE green, awarded exclusively to BPM, to finance the company's share of regional train investments.
THE PROJECT OBJECTIVES
TPER's will to establish itself as an active player in an ecosystem of integrated and intermodal mobility in the territory is expressed not only through the modernisation of the bus and train fleet, but also through the development of digital platforms and new technologies for a mobility that is ever closer to people's needs. Examples of this commitment are the Roger app, the implementation of innovative contactless payment systems, or the management of 'Corrente' electric vehicle sharing services.
In particular, the development plan set out by TPER includes investments in different areas, such as:
- the technological innovation of transport systems - from liquid methane to biomethane, electric and hydrogen - with the replacement of 582 new buses, equal to about 49% of the existing fleet, of which 139 are electric and 164 hydrogen-powered
- the renewal or upgrading of infrastructure to support transport system technologies, especially hydrogen and electric
- the PIMBO project concerning the infrastructure for new tram lines
- the renewal of vehicles with a view to improving both the quality of transport services and environmental parameters in the area
- technological and digital innovation
KEY ELEMENTS OF SUCCESS
- Proposition of tailor-made Public Finance solutions
Intesa Sanpaolo, through the IMI Corporate & Investment Banking Division teams specialised in public finance and origination, has made an offer customised to the client's needs, separating the investment component covered by public grants from TPER’s component and proposing differentiated structures for the two types of financing. With regard to the credit line for grant advance, it provides a structure that balances the client's needs for flexibility of use with the banking needs for the bank system. - Coordination role of the pool
The coordination role played by Intesa Sanpaolo allowed for the proper management, also in support of TPER, of both the pool and the different loans necessary to meet the client’s requirements - ESG vocation and commitment
The introduction of ESG KPIs and TPER's commitment to achieving targets is of great importance for a public company and its shareholders. This specificity can also bring benefits in terms of financial charges borne by the client for the resources obtained.
Data source: TPER Press Release 28.08.2023