Isolux may float €7.5bn concessions unit in Brazil

Isolux Corsán chairman Luis Delso met with Brazilian president Dilma Rousseff to discuss Isolux’s plans to list its recently formed worldwide concessions unit on the Brazilian Stock Exchange. The business has a capital expenditure of €7.5bn for all the projects in which it is currently involved.

Madrid-based developer Isolux Corsán announced today that it is studying a listing on the Brazilian Stock Exchange for its recently created concessions unit – Isolux Infrastructure Projects.

The developer said in July that it had aggregated all its worldwide concessions activities into a new company. In a previous statement, Isolux said that, over the last past years, its concessions have delivered annual compound growth of 70 percent. The new business has a total capital expenditure of €7.5 billion for all the projects in which it is currently involved.

Luis Delso, Isolux’s chairman, met with Brazilian president Dilma Rousseff last Friday to discuss the possibility of listing Isolux Infrastructure in Brazil. The developer said Isolux Infrastructure is already headquartered in São Paulo and indicated that Brazil, where it has operated since 2000, accounts for 50 percent of the capital expenditure already approved for Isolux Infrastructure concession projects. 

The firm has filed a “draft offering circular” with the Brazilian securities commission, CMV, and said it plans to use the proceeds from a possible initial public offering to help grow its concessions business in the countries where it operates: Brazil, India, Italy, Spain, the US, Mexico and Peru.

Isolux Infrastructure manages and operates infrastructure projects in three sectors:  toll road concessions, where it has over 1,600 kilometres (km) under concession agreements, mostly in India and Brazil; transmission and distribution lines, where it operates and manages over 5,200 km of power lines in Brazil, India and the US; and photovoltaic (PV) solar power, where it has 42 PV power plants in operation with an installed capacity of 168 megawatts (MW), with 60 MW under construction and a 900 MW pipeline.

Isolux had previously said that it aims to achieve a balance between its exposure to emerging markets such as India, Brazil and Mexico and consolidated economies such as the US and Spain “so that it can respond immediately to the latest market conditions wherever they impact”. 

In May this year, Isolux announced it was committing $200 million to a $400 million joint venture with Morgan Stanley Infrastructure Partners targeting Indian transport infrastructure. At the time of the deal, the partnership already had $1.6 billion of highways under construction in the country.