Ferrovial achieves financial closure on €580m road project in Colombia
November 15, 2018 – Spanish company Ferrovial, through subsidiary Cintra, has achieved financial closure on the Ruta del Cacao toll road concession in Colombia.
The company has secured non-recourse funding of €465m, maturing in 2035, as a syndicated loan from BBVA Colombia, Bancolombia, Financiera de Desarrollo Nacional (FDN), the Inter-American Development Bank (IDB Invest), Fondo de Deuda BlackRock and Fondo de Deuda Unión para la Infraestructura (UPLI).
The syndicate appointed BBVA Colombia and Bancolombia as advisers and structurers for the deal.
The 25-year concession involves the construction of 80.84km of new road, upgrading 108.2km of existing road, and construction of 16 bridges, two viaducts and two tunnels with a combined length of 5.95km.
Cintra and its partners, RM Holdings, which is owned by Fondo de Infraestructura Colombia Ashmore I, and MC Victorias Tempranas, owned by Grupo Mercantil Colpatria, will be responsible for developing and operating the project.
Ferrovial Agroman and construction company Colpatriawill be responsible for design and construction.
Construction is expected to be completed in 2021. The road will enhance mobility in the Los Santanderes and Magdalena Medio regions and also connect with the Ruta del Sol highway.
The project is also aimed at improving access to the municipality of Barrancabermeja and its hinterland.
Currently, Cintra manages more than 2,072km of toll roads in 26 concessions in Canada, the US, Europe, Australia and Colombia.
In October 2018, Ferrovial’s UK subsidiary Amey has won a £325m, 15-year contract from Highways England for the highways maintenance and to act as response contractor for Area 10 in the UK.
The road network serves the North West of England, connecting Manchester and Liverpool, and surrounding areas.
From April 2019, Amey will provide routine and cyclic maintenance on the trunk road and motorway network around Cheshire, Merseyside, Greater Manchester and South Lancashire.
Amey, which will be responsible for incident response, defect rectification and severe weather treatment, will also be in charge of traffic management during incidents, as well as the operation of the five main depots in the region and seven winter-only depots.