Latin America: Abertis-led SPV eyes loan for Chilean road upgrade

06 April 2018 - 12:00 am UTC

The SPV behind Chile’s 133km Santiago-San Antonio highway is raising a three-year UF 3m (USD 133.5m) revolving loan to fund an upgrade, said two sources familiar.

Sociedad Concesionaria Autopista del Sol is now in talks with potential lenders after receiving proposals.

Inframation understands that multiple local banks have sent offers to the SPV to participate in the transaction.

The loan, which will mature when the concession contract expires in 2021, will be used to fund the construction of a third lane. The highway, which connects central Santiago to a suburb called Talagante, reportedly requires an investment of around UF 3m.

The SPV will primarily back the loan using toll revenues. According to one of the sources familiar, the concession contract agreed with the Ministry of Public Works (MOP) also includes a mechanism to compensate the concessionaire if toll revenue fails to reach a threshold value. If revenues exceed that value, the SPV would return the difference to the MOP.

The SPV is owned by VíasChile, itself owned by Spanish developer Abertis (80%) and Abu Dhabi Investment Authority (ADIA) (20%).

ADIA purchased its 20% stake in Abertis’ Chilean unit for EUR 495m in October 2016.

SPV