Abertis extends Brazilian toll road concession

The Spanish developer will invest an additional R$91m in exchange for a six-month extension of the Autovias concession in Brazil.

Abertis Infraestructuras, the infrastructure division of the Barcelona-based Spanish developer, will invest an additional R$91m (€29.8 million; $38.3 million) in Autovias, a 317-kilometre (km) road in Brazil, Abertis said in a regulatory filing to the Comision Nacional del Mercado de Valores (CNMV), Spain’s capital markets regulatory commission.

In exchange for the new investment, agreed with the Sao Paulo State Transportation Regulatory Agency (ARTSEP), Abertis’ Autovias concession will be extended by six months, moving the expiration date to May 2019.

“The works, which will be finished by June 2016, will improve the service levels for 1.5 million people in Sao Carlos, Araraquara, and Ribeirao Preto,” Abertis said in the filing, referring to the 14-km segment that will be enhanced.

Autovías is one of nine toll road concessions Abertis operates in Brazil. The holding vehicle for 3,226km road network is Arteris, in which Abertis and Brookfield Infrastructure Partners acquired a 60 percent stake in December 2012.

The acquisition of Arteris turned Abertis into the world’s largest toll road operator. In the last few years, Abertis has refocused its business on toll roads and telecommunications, divesting non-core assets.

Last week, Abertis announced the sale of a 33.3 percent stake in Aeropuertos Mexicanos del Pacifico (AMP), marking its exit from the Mexican aviation sector.