Latin America: InfraRed completes 50% Colombian highway stake buy

18 December 2017 - 12:00 am UTC

UK infrastructure fund manager InfraRed Capital Partners has agreed to acquire a 50% stake in the SPV Ruta al Mar developing the Antioquia-Bolívar highway. 

Project sponsor Construcciones el Cóndor said it had signed an agreement on 14 December for the transfer of 350,000 ordinary shares in the project, according to a filing on the website of Colombia’s financial regulator (Superfinanciera).

“This is part of the company’s financial plan to sell stakes in our concessions and thus maximize returns for shareholders and reduce our equity costs,” a spokesperson for Construcciones el Cóndor saidConfirming that selling stakes in mature assets was part of the company’s strategy, the spokesperson said it was not currently involved in any other sale processes. 

BTG Pactual (financial) and Villegas Melo (legal) represented Construcciones el Cóndor, while Bancapital (financial) and Holland & Knight (legal) advised InfraRed Capital Partners. 

The acquisition is pending regulatory approvals, which Inframation understands should enable the deal to close in the second week of January. 

According to the spokesperson, the acquisition includes 50% of the shares in the SPV and 50% of the subordinated debt associated with the project – without specifying how much the acquisition was worth.

Construcciones el Cóndor will put the proceeds from the sale towards the equity of its other projects.

The company is one of Colombia’s largest infrastructure concessionaires with six operational highway assets and stakes in two concessions that are still closing financing – the Meta Department highway upgrade package – (Malla Vial del Meta) and the Vias del Nus highway (Vinus).  

Ruta al Mar sealed a COP 1.472trn (USD 488m) financing package to fund the 490.9km highway project on Friday (15 December). 

The financing included 26.2-year notes denominated in Unidad Valor Real (UVR), an inflation-linked unit similar to Chile’s UF. The financing also included three credit facilities.

InfraRed Capital Partners did not respond to requests for comment before publication. 

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