Prestigious deal-award for R4-project

The award, attributed by Project Finance International (PFI) — a leading global reference in industrial project finance — highlights the success of the consortium’s approach and its outstanding expertise based on a leading track record in PPPs.
The financing for this €1-billion public-private partnership was closed in May 2024.

Transforming mobility in Ghent

The R4WO project is a key infrastructure initiative designed to improve traffic flow, safety, and environmental sustainability on the R4 ring road around Ghent. The project aims to modernize approximately 30 kilometres of the R4 and adds 20 kilometres of bicycle paths. These upgrades will not only enhance the local community’s mobility but also improve the broader regional transportation network. The project includes new bridges, tunnels, and underpasses, as well as extensive upgrades to pedestrian and cyclist infrastructure. Once completed in 2031, the R4 West East project will improve the quality of life for residents and support long-term economic growth in the Ghent area.

Record-breaking deal

The BRAVO4 consortium successfully raised €1 billion in long-term debt to finance the R4WO project. This landmark deal, which has an impressive 37-year tenor, was financed by the consortium together with 12 Belgian and international
lenders, including institutional investors, demonstrating the strong confidence in this ambitious project. About half the debt was provided by institutional investors and insurers. Canadian institutional investors SLC Management, Manulife and Canada Life took part alongside Aviva Investors and Belgian investors AG Insurance and Ethias in a 37-year amortising private placement note. The other half of the syndicated debt package was provided by a bank group including KBC Bank, Belfius Bank, CaixaBank, CACIB, The Korea Development Bank and DZ Bank AG, in the form of a 25-year amortized bank term loan, a milestone bridge facility available during construction and an equity bridge to be repaid by the shareholders at the end of construction.

Comprehensive structure

What sets this deal apart is its comprehensive structure: a seven-year construction period followed by 30 years of operation under an availability-based contract. This ensures that maintenance and operational costs are managed efficiently while guaranteeing the project’s long-term viability. This deal exemplifies strong collaboration and alignment of interests among multiple stakeholders, including the authority, five sponsors, 12 different financial institutions and various contractors, highlighting the robust management and good governance of the project.

A model of public-private cooperation

The European Infrastructure Deal of the Year award underscores the effectiveness of public-private partnerships. The BRAVO4 consortium proves that infrastructure projects thrive when innovation, sustainability and efficiency come together. The consortium’s ability to navigate complex financial structures while working closely with regional and
local authorities has been crucial to the project’s success. This deal highlights the importance of creating sustainable infrastructure that addresses both immediate and long-term societal needs. With the completion of the construction set for 2031, the R4WO project is a model for future infrastructure developments in Belgium and beyond, setting a benchmark for delivering largescale projects through careful planning and strategic partnerships.