Sacyr gets €276m to close two Chilean motorways

Chilean bank Corpbanca is providing the financing for the road concessions. The Spanish developer expects to net a combined €1.3bn in revenues over the life of the concessions.

Spanish developer Sacyr Vallhermoso is ramping up its presence in Chile with the announcement that it has reached financial close on two Chilean highways totalling 182 kilometres.
Chilean bank Corpbanca is the sole financier of the two concessions – the €270 million Concepcion-Cabrero motorway and the €140 million Rutas del Desierto. The bank is providing a total of €270 million in debt which breaks down into €196 million for Concepcion-Cabrero and €80 million for Rutas del Desierto.
Sacyr expects to net €792 million at the end of its 35-year contract for the 103-kilometre Concepcion-Cabrero motorway and €473 million once the 32-year concession for the 78-kilometre Rutas del Desierto expires.
The two new motorways will help bolster Sacyr’s Chilean portfolio, which also includes the concession to the Vallenar-Caldera motorway, which should become fully operational this month. The latter calls for the widening of 180 kilometres of a two-lane road as well as the 33-kilometre Contiapo bypass project.
Sacyr actually started investing in Chile in 1996, having built over €2 billion of projects across the country. However, the Spanish developer’s Chilean concessions portfolio was divested when the company sold its former concessions arm – Itinere – to Citi Infrastructure Investors for €2.9 billion in 2009.