- The EIB has signed a €110 million loan with Fira 2000 SA to extend the Gran Via exhibition centre
- The project is expected to start next year with an estimated total cost of €234 million
The Minister of Economy and Finance of the Government of Catalonia Jaume Giró met with Vice-President of the European Investment Bank (EIB) Ricardo Mourinho Félix to sign a loan agreement of €110 million granted by the EIB to Fira 2000 SA to finance part of the costs to extend the Gran Via exhibition centre. This borrowing operation is part of the financing project signed in 2019 by the six institutions that make up Fira 2000 SA, and will be backed by a guarantee from the Catalan government.
According to Giró, the signing of this operation “is a clear indication of the confidence of the EIB — one of the most important financial institutions in Europe — in the soundness of the Catalan economy, and in a growing project such as the Fira de Barcelona.” He added that the investment in the Fira de Barcelona project will have implications for Catalonia today and in the future, “as demonstrated by the recent ISE and MWC trade shows, placing Barcelona and Catalonia at the global forefront of leading sectors such as technology and digital.”
According to EIB Vice-President Ricardo Mourinho Félix, “We are pleased to be financing Fira 2000’s project to expand its Gran Via venue, as part of a leading European exhibition complex such as the Fira de Barcelona. This agreement demonstrates the EIB’s strong commitment to innovation, as well as our fruitful collaboration with the Catalan government on projects that create new jobs and sustainable infrastructure.”
Financing project
In 2019, the six shareholder institutions of Fira 2000 SA (the Government of Catalonia, the Barcelona and L’Hospitalet City Councils, the Barcelona Metropolitan Area, the Barcelona Provincial Council and the Barcelona Chamber of Commerce) approved the financing project to extend the Gran Via exhibition venue and remodel the Montjuïc venue, setting out the financing instruments and financial commitments to be undertaken by each of the parties. The project will require an investment of €367 million (€234 million for the Gran Via extension and €133 million for the Montjuïc remodel). The works are expected to begin next year, with the Gran Via venue set to be inaugurated in 2026. Montjuïc will follow in 2029, coinciding with the centenary of the 1929 International Expo.
Fira 2000 SA will use external debt to finance this major exhibition infrastructure project. In addition to the €110 million signed with the EIB, the financing project includes plans to apply for bank financing and a potential second EIB loan. The Catalan government and the Barcelona and L’Hospitalet City Councils will also discuss the possibility of obtaining €30 million in EU funds with the European Union.
Other EIB operations
During the signing of the financing operation, the Minister of Economy and Finance and the EIB vice-president also discussed other operations between the Government of Catalonia and the EIB that are currently on the table or being studied. These include projects in the areas of railway infrastructure, science and technology, the water cycle and the operational programmes of Catalonia financed by European structural funds.
Catalonia’s rating upgraded
The signing of this loan comes as the Government of Catalonia’s credit rating is upgraded by two of the main international rating agencies, Fitch and DBRS Morningstar. Last July, Fitch Ratings upgraded the Catalan government’s rating to investment grade by two notches, from BB to BBB- with a stable outlook. In March, DBRS Morningstar also upgraded Catalonia’s rating to investment grade (BBB, stable trend). It had not received an investment grade rating from two international rating agencies in ten years. In addition, in November 2021 it received an A2 sustainability rating from Vigeo Eiris, the second highest rating on a 12-level scale based on the rating agency’s methodology.