Sacyr-led SPV Área Limpia closed a USD 32.2m term loan with Santander to finance initial investments associated with waste management service in Bogotá.
A source familiar told Inframation that the SPV Área Limpia, comprising Sacyr’s affiliate Valoriza Servicios Medioambientales and Mexican company Sinergias Ecológicas, worked with the Spanish lender on the credit facility that has a tenor of six and a half years. The source declined to comment on the pricing of the loan.
The deal is backed by payments for collection of waste made by a Bogotá government unit called Unidad Administrativa Especial de Servicios Públicos (UAESP). Due diligence investigation showed that collection of these payments has a healthy track record of more than 95%.
The structure of the transaction included a currency swap to mitigate risk associated with FX volatility, as the financing was disbursed in US Dollars while the concession contract is denominated in Colombian Pesos.
Proceeds will go to buy a garbage truck fleet, to build the headquarters building of the SPV and initial payments associated with contractual rights.
Santander served as sole mandated lead arranger, hedge provider and structurer of the deal.
KPMG was hired as independent commercial due diligence advisor.
Posse Herrera & Ruiz served as local legal advisor to the lender, while Cuatrecasas was the legal counsel for Spanish Law.
The legal advisory to the SPV was done in-house, as well as the financial advisory.
In January, Sacyr said that Valoriza Servicios Medioambientales as consortium leader won an eight-year service contract (CSP) granted by UAESP to collect and manage waste in the northern part of City of Bogotá, servicing a population of approximately 1.5m inhabitants. The contract, signed in February, has a value of EUR 170m (USD 198m), according to Sacyr.