It should be noted that France did not provide any evaluation of the new syndicated facility of EUR 8 billion which replaced that of the summer of 2003.

facility of EUR 3.5 billion (measure 3)

facility of EUR 8 billion (measure 3)

France provided calculations for the former counter-guarantee covering the facility of EUR 3,5 billion, taking the view that the aid should be calculated by multiplying the maximum amount of state exposure by the ‘real’ risk of the counter-guarantee being mobilised, and subtracted from this the costs paid by Alstom.

Firstly, the state counter-guarantee on the syndicated bonding facility (measure 3) will be released and repositioned within a guarantee mechanism that will cover a new syndicated facility programme totalling EUR 8 billion, provided by the banks.

Consequently, the Commission considers that the potential risk for the state amounted to 100 % of the amount of the facility covered by the counter-guarantee, i.e. EUR 2,275 billion. However, following the changes announced in May 2004, the state counter-guarantee covering the bonding facility will be abolished.

This new facility comprises the following guarantee mechanism: losses will be covered primarily by a EUR 700 million cash collateral provided by the company.

Another competitor, which did not want its identity to be revealed, is mainly concerned at the granting of the state’s counter-guarantee covering 75 % of the EUR 3,5 billion facility. In its view, the counter-guarantee is such as to cause serious distortions of competition.

As pointed out in recital 133, the existence and the amount of aid must be determined ex ante, i.e. at the time when it was granted and not, as France claims, after the facility produced its effects.

The banks have provided a guarantee on the first capital increase amounting to EUR 300 million, short-term liquidity amounting to EUR 300 million (measure 2), a syndicated facility on which their real exposure will amount to EUR 6,05 billion (measure 3), a PSDD amounting to EUR 1,2 billion, ORA bonds worth EUR 900 million and a guarantee on the placing of the new capital increase amounting to EUR 800 million to EUR 1 billion, of which EUR 700 million will be used to finance the cash collateral.

It should be noted that France’s comments relate only to the aid package before it was adjusted in May 2004. France does not therefore comment on the quantification of the aid included in the guarantee covering the new facility that replaces the counter-guarantee (measure 3) or on that included in the new proposed capital increase (measure 6).

For this reason, no further aid may be paid to the company for two years from the date of this Decision, which corresponds approximately to the restructuring period and the period during which new bonds may be issued under the new syndicated facility [37].

The last tranche of the Union contribution to the risk-sharing instrument for project bonds shall be committed no later than 31 December 2013. The actual approval of project facilities by the EIB’s Board of Directors shall be finalised no later than 31 December 2014.

Consequently, the Commission considers that the potential risk for the state amounted to 100 % of the amount of the bonding facility covered by the counter-guarantee, i.e. EUR 2,275 billion. However, following the changes announced in May 2004, the state counter-guarantee covering the facility will be abolished.

As stated in recital 52, the abolished counter-guarantee will be replaced by a new second-rank guarantee amounting to EUR 1,25 billion, which will be incorporated into the new facility, representing a maximum outstanding amount of EUR 8 billion (measure 3).

The period covered by this syndicated facility is two years from the time at which it starts to run, which is expected to be the summer of 2004. During that period, on the one hand, the writing-off of existing bonds through the completion and delivery of products by Alstom will bring about a reduction in the total outstanding amount of the bonding facility.

The pricing of the project facilities is based upon the risk remuneration in accordance with relevant standard rules and criteria of the EIB.

As regards measure 3, France considers that the State counter-guarantee covering the syndicated facility must be deemed to be rescue aid provided during the period when the bonds were issued by the banks and counter-guarantees provided by the State, since the measures implemented during that initial period made it possible to keep Alstom in business.

The change to the state guarantee covering the facility means that the banks now have a EUR 6 billion exposure. In addition, more than 80 % of the new capital increase will be guaranteed by the banks.

Firstly, the state counter-guarantee on the syndicated facility (measure 3) will be released and repositioned within a guarantee mechanism that will cover a new syndicated bonding facility programme totalling EUR 8 billion, provided by the banks.