Globalvia increases capital pool by €350m

Globalvia, the Spanish infrastructure developer, has completed the €750 million fundraising process it initiated two years ago.

The UK’s Universities Superannuation Scheme, Dutch pension PGGM and Toronto-based OPTrust have agreed to commit an additional €350 million to the firm’s PPP-dedicated fund. The fresh capital will come on top of the €400 million already pledged by PGGM and OPTrust in 2011.

USS, a new investor with Globalvia, will contribute €150 million, while PGGM and OPTrust have committed €100 million each. The investments will be made in the form of a convertible loan facility.

The proceeds will be used to meet the cash requirements of Globalvia’s current portfolio as well as facilitate funding for future investments.

“Pension funds are ideal partners for the infrastructure business because of their long term strategy,” commented Juan Bejar Ochoa, chief executive of Globalvia, in a statement. “This agreement with USS completes the process that began two years ago with OPTrust and PGGM.”

Globalvia was formed in 2011 through a joint venture between transport conglomerate FCC and national lender Bankia, formerly Caja Madrid. Upon its formation the firm created a subsidiary – christened Globalvia Inversiones (Globalvia Investments) – to which it transferred selected road and rail concessions, with the participation of its investors through a mandatory convertible instrument.

Globalvia’s portfolio now counts 37 assets comprising metros, motorways and a railway operator in Spain as well as highways in Portugal, Ireland, Chile, Costa Rica and Mexico.

The firm bills itself as the world’s second-largest investor and operator of transport projects. While striving to increase geographical diversification, it recently stated its intention to refocus on road and rail projects in coming years. It mostly invests in brownfield concessions.

Recent deals sealed by the firm have included buying the shares held by developers ACS and Sacyr in the Seville Metro for €119 million in October, and acquiring a 30 percent stake in the companies that operate Barcelona’s tram, making it the largest shareholder in the system, in September.