The financing of the €250m, 1.000 bed hospital in Treviso (Italy) embeds the values and ideas of social impact investing within the financing of a major infrastructure project for the very first time. This ground-breaking structure can represent a model for infrastructure projects going forward.
In 2017 international property development company Lendlease successfully closed the financing of the PPP for the redevelopment and subsequent management of a Hospital in Treviso (Ospedal Grando). PlusValue provided Lendlease with a comprehensive, dynamic and integrated impact investing strategy involving multiple stakeholders. PlusValue’s impact investing strategy has stimulated 2 commercial banks to reduce the cost of capital used for the project financing also in light of the financing from the EIB to support the redevelopment project. These financial savings will be used to create a social impact fund – OGII – which can be directly re-invested into the local community in Treviso through loans, equity, and grants delivered within and through the hospital’s value chain. PlusValue ensured that the different strands and services act in synergy to maximise impact achieved and conducted a comprehensive impact assessment to guide the consortium, asset managers, investments, and all key stakeholders towards maximising impact.
The pilot has been mentioned as a very success story for impact investing by the Vice-President of the European Commission for Jobs, Growth, Investment and Competitiveness, Jyrki Katainen, and the EIB Vice-President, Dario Scannapieco. Ultimately, PlusValue endeavours to have the outcomes of the Treviso Hospital project act as a basis to transform the entire business model for financing social infrastructure by re-aligning public and private interests.