CCR Group Set to Win Sampa Ring Road

Brazilian toll-road operator Companhia de Concessoes Rodoviarias (CCR) has made the lowest bid for the rights to operate the western portion of Sao Paulo’s Rodoanel Mario Covas ring road, it says, making it the likely winner. CCR and partner Encalso Construcoes have offered to charge a toll of BRL1.17, below runner up Brivas’ BRL1.26, and well below the BRL3.00 maximum. The company must make an up-front payment of BRL200m, according to Brazilian media reports of a conference call CCR held yesterday. This it will fund with a BRL600m bridge arranged by UBS Pactual. CCR expects to spend about BRL150m in each of the first two years, according to Itau, and will replace the bridge with a 10-year bullet, expected to be priced at Libor plus 250bp. CCR has not ruled out other sources of funding, and says it is in advanced negotiations with pension funds regarding equity investment.