PGGM and OPTrust invest €400m in Globalvia

The Dutch and Canadian pensions are investing through 'a convertible instrument maturing in five years' which will give them a stake in the developer. They also have the option to increase their investment to up to €750m.

Roughly a year ago to this day, Globalvia chief executive Juan Bejar was telling a roomful of journalists in London that the time was right to add new shareholders to the Spanish developer, hinting that an announcement could be forthcoming during the first quarter of this year.

Two quarters later, Bejar's Globalvia announced today that Dutch pension provider PGGM, together with Canadian counterpart OPTrust, “have agreed to invest €400 million in Globalvia through a convertible instrument maturing in five years, with an option to increase the amount up to €750 million”.

A Globalvia spokeswoman said the two pension investors can increase their investment amount at any time, but was not able to say what shareholding they will own in the Spanish investor at the end of the five-year investment period. She explained the shareholding will depend on the value of Globalvia's assets at the time, among other factors. 

The pensions are investing in a newly formed Globalvia subsidiary containing 18 select rail and road concessions located in Spain, Portugal, Chile, Mexico, Costa Rica, Andorra and  Ireland. Globalvia said “the main purpose of the new funding is to grow Globalvia's portfolio primarily through adding new brownfield concessions” in the road and railway sectors. 

Geographically, the Spanish developer plans to focus on countries that are part of the Organisation for Economic Co-operation and Development.

“This is the transaction we have been looking for,” commented Bejar. “Pension funds are ideal partners for the infrastructure business. This is a logical step in a capital-intensive business seeking growth and is an essential element for this venture,” he added.

Globalvia was formed in 2007 as a 50/50 joint venture between Spanish developer FCC and local bank Caja Madrid, now known as Bankia. The developer recorded €183.4 million of turnover last year and earnings before interest, tax, depreciation and amortisation (EBITDA) of €118 million. It currently manages 38 infrastructure assets, including roads, railway, ports, airports and hospitals, but says it will focus progressively on road and railway concessions.

Globalvia was advised by Hogan Lovells, J.P. Morgan and Macquarie Capital on the deal.