Vinci Signs French Railways Public-Private Partnership Contract

French construction and concession company Vinci SA (DG.FR) Thursday said its 30% owned unit Synerail has signed a public private partnership contract with French railway network Reseau Ferre de France, or RFF, for a digital telecommunications network.

MAIN FACTS:

- The first public private partnership contract in the French rail sector is for 15 years and worth around EUR1 billion, Vinci said.

- Synerail is 30% owned by Vinci, 30% by Vivendi SA's (VIV.FR) SFR, 30% by French insurer Axa (AXA).

- The works, worth a total of about EUR520 million, will be executed by a company in which Vinci Energies has a 60% equity holding. They will take five years to complete.

- Operation and maintenance of the GMS-R system will be carried out by a specially formed company owned 40% by Vinci Energies. These activities represent EUR430 million in total.

- The project financing consists of shareholders' equity of EUR58 million, an RFF contribution of EUR160 million and a non-recourse bank loan of EUR520 million.

- By Paris Bureau, Dow Jones Newswires; +331-4017-1740; djnews.paris@dowjones.com

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