Ferrovial seeks funding for Colombian highway

06 October 2016 - 12:00 am UTC

A SPV including Ferrovial is seeking a loan of around COP 2trn (USD 680m) to fund the Bucaramanga-Barrancabermeja-Yondó highway in Colombia, InfraLatinAmerica has learned.

A source familiar said the Ferrovial-led SPV, known as Ruta del Cacao, is negotiating with local banks for a long-term, non-recourse credit facility. The transaction will be backed by cash flows from tolls in existing and new roads.

BBVA is financial advisor to the sponsors.

The SPV Ruta del Cacao comprises Spanish developer Ferrovial´s subsidiary Cintra Infraestructuras Colombia (40%), a subsidiary of Colombian holding company Mercantil Colpatria MC Victorias Tempranas (30%), and RM Holdings (30%).

The SPV won a 25-year public-private-partnership (PPP) contract with Colombia’s infrastructure agency in August 2015 to design, finance, build, operate and maintain the 150km Bucaramanga- Barrancabermeja-Yondó highway.

The project, connecting the municipalities of Yondó in the Antioquia department and Barrancabermeja and Bucaramanga in the Santander department in center-east Colombia, includes the construction of a tunnel, revamping existing roads and adding 37km of a second lane. It has an estimated cost of COP 1.7trn, which could rise to COP 2.8trn throughout the life of the concession.