Finest Bay Area Development has signed the agreement with Touchstone Capital Partners for the financing of the Tallinn Tunnel. The funding comes in addition to a previously announced sum of €100m agreed with ARJ Holding in late 2018.
The purpose of the Finest Bay Area Development tunnel project is to construct a subsea railway tunnel that will significantly reduce travel times and help create a unified metropolitan area in the capital regions of Finland and Estonia.
Touchstone Capital Partners chairman Kenny Song said: “The railway tunnel between Finland and Estonia is new and ambitious project that is great to be involved in. The tunnel creates a common metropolitan area from the Helsinki and Tallinn regions, which have a great opportunity to become a centre of gravity connecting Asia and Europe.” China's Touchstone Capital Partners has made similar investments in Europe, Australia and North and South America.
“We are very pleased with the negotiations and the agreement reached,” said Kustaa Valtonen of Finest Bay Area Development. “Touchstone has extensive experience in financing similar large private infrastructure projects”
Financing is available to Finest Bay Area Development as the project progresses. Financial details will be negotiated over the next six months.
“Our goal is to also secure European, Nordic and Finnish capital investments in addition to the already agreed financing arrangement,” said Valtonen. “We are looking for a sustainable and fully balanced financing solution for the project.”
Finest Bay Area Development Company founder Peter Vesterbacka said: “The Tallinn Tunnel is one of Europe’s largest infra projects and it will require close collaboration between the project consortium and the public sectors of Finland and Estonia. We are very fortunate to have very effective and transparent public actors in both nations, and we look forward to open and active partnership with all parties.”