Colombian toll road concessionaire Costera has sold dual-currency bonds to help
finance the construction of the Cartagena-Barranquilla toll road, LatinFinance has heard.
Goldman Sachs priced a $150.8m Rule 144A/Reg S note and a
COP327bn ($110m) UVR-linked bond late on Thursday. Scotiabank joined the
deal as a co-manager, sources said.
Initial price thoughts put the yield on the dollar tranche in the 7% area, while the yield on the UVR-linked peso bond was at 6.875% to 7%, a banker said.
Both tranches have a 17.5-year maturity and average life of 12.5 years.
The dollar-denominated note priced at 98.017 with a coupon of 6.75% to yield
7%, in line with early price talk, a source said. The peso note
priced at 94.237 with a 6.25% coupon to yield 6.875%, on the tighter end of
guidance.
Long-term dedicated infrastructure funds joined the deal
along with local and international insurance companies and pension funds. Order
books opened on Wednesday, after investor meetings wrapped up earlier in the month. Sources did not disclose the final size of the order book.
Fitch rated the notes BBB- on a global scale and AA+ on a local scale.
The Costera financing package also includes around $200m in loans,
one source said. Sources did not reveal the terms of the loan agreement but said commitments came from three local banks and one Colombian debt fund. Colombian development bank FDN was also expected to provide
a subordinated
line of credit to the deal.
The deal mirrors a similar structure for the Autopista Conexion Pacifico 3, the first 4G project to reach financial close. Local builder Mario Huertas Cotes and Costa Rican builder Meco
each own 30% of Costera, while the construction subsidiary of financial
services group Colpatria holds 30% and local builder Castro Tcherasi has 10%. Building the 110km toll road began in November last year and is scheduled to finish in 2018.
Mario Huertas and Meco has also worked with Goldman Sachs on financing the Pacifico 3 and Autopista Girardot-Honda-Puerto Salgar concessions. Alto Magdalena, or Alma, expects to close a $350m dual-currency loan for the Autopista Girardot-Honda-Puerto Salgar by the end of July, according to sources.
Goldman Sachs has invited local and international lenders to participate in the financing. The concessionaire and the bank have not decided how long the tenor will be, sources said. Mario Huertas and Meco each own 30% of Alma, while Pavimentos Colombia (Pavcol) has another 30% and Ingeneria de Vias has 10%.
After a brief lull in Latin America’s primary bond markets, owing to investor caution from Britain’s decision to leave the EU, new bond issues came to market this week.
Argentina made a surprise return to the bond market with a dual-tranche $2.75bn across 12- and 20-year maturities. The Dominican Republic tightened yield on its 6.875% 2026 notes, adding $500m to the bond. The province of Salta in Argentina sold $300m in 2024 amortizing bonds that mature equally in 2022, 2023 and 2024.
In the corporate space, Brazilian meatpacker Marfrig added $250m to its 8% 2023 bonds, while Argentine candy maker Arcor sold $350m in non-call four 2023 bonds, enabling it to buy back the outstanding $200m in 7.25% 2017 bonds.