Long-term loan for PAI investments

Summary

The City of San Pedro del Pinatar is seeking a long-term loan of up to €6,590,104.39 to finance the municipality’s contribution to investments in its Integrated Action Plan, co-financed by the European Regional Development Fund. The plan includes, among other things, works at a theatre and cultural centre, a sports pavilion, environmentally friendly school improvements, urban regeneration and greening, a cycle path, solar energy installations, a geographic information system service and a surveillance system. The loan runs for 12 years: the first two years allow funds to be drawn freely and defer repayment of principal, followed by ten years of repayment in equal quarterly principal instalments. The interest rate is fixed for the full term. The annual effective rate (TAE) may not exceed 3.974% (equivalent to a maximum nominal rate of 3.916% for quarterly payments). Interest may be charged only on amounts drawn; other fees and banking charges are prohibited. Full or partial early repayment must be free of charge. Bids may be submitted by credit institutions registered with the Bank of Spain. Each bid must be for at least €2,200,000 and must be submitted electronically within 15 business days from the day after publication of the contract notice. Bids are ranked by the most favourable interest rate, and no tender guarantee is required.