ISA, Construcciones El Condor Ink Highway Concessions Alliance Deal; Conconcreto Wins New Financing Package

Medellin-based international electric-power transmission and highway concessions giant ISA announced December 19 an “alliance” deal with Medellin-based construction giant Construcciones El Condor for highway deals in Colombia and Peru.

According to the new partners, ISA will have a controlling 51% stake in the alliance.

“ISA is taking quick steps to materialize the ‘ISA 2030 strategy’ that was recently made public, in which emphasis on the road business is focused on consolidating its business in Chile, where it is currently a leading player, and on exploration of new markets in Colombia and Peru,” according to the company.

“ISA brings its extensive experience as an operator in Chile, where it currently leads the segment of interurban highways, its financial muscle and its leadership as a ‘multilatina’ [company]; while Construcciones El Cóndor S.A, brings its recognized experience in construction, concession management and road infrastructure projects.”

Besides opening doors to public tenders for road concessions in Colombia and Peru, the alliance also “opens the possibility of executing a joint strategy of evaluation, participation and acquisition of concessions,” according to ISA.

In Colombia, several “fourth generation” (4G) highways are nearing completion, so new contracts to maintain and operate these highways are soon to be put up for bid, the company noted.

Luz María Correa Vargas, president of Construcciones El Cóndor, added that “we are a relevant player in Colombia with nearly 40 years in the market. We have great strengths in the management of concession contracts, especially in the structuring of offers, and in the design, construction and engineering of road concessions.

“Our goal is to continue growing and for this, the support of a solid and recognized company like ISA is key. We find that we have an affinity of interests and that we complement each other to be leaders,” she said.

Constructora Conconcreto Loan Syndication

On a related front, Medellin-based Constructora Conconcreto announced December 19 that it just won a syndicated loan agreement with Colombia banking giants Bancolombia, Banco Davivienda, Banco de Bogota, Itaú Corpbanca Colombia, Banco Popular, Banco de Occidente, Banco Santander de Negocios Colombia, BBVA Colombia and Commercial Bank AV Villas.

“The support and vote of confidence of all the banks that participated in this process for Constructora Conconcreto S.A. is undoubtedly a favorable symptom for the construction sector in our country,” according to Conconcreto.

“This contract allows the company to re-profile its financial debt at a value of COP$639.8 billion [US$198 million], a loan whose maturity date will be December 31, 2023.

“Thanks to these new conditions, Constructora Conconcreto S.A. it is able to continue with the fulfillment of the investment plan required in strategic projects, which reaffirm the sustainability of the company in the long term and contribute to the national infrastructure, such as:

“• Via 40 Express, one of the most important concessions in the country, since it is the most important commercial artery in Colombia, connecting the Sabana de Bogotá with the Port of Buenaventura.
“• Consortium Vial Helios, which will complete the execution of Section 1 of Ruta del Sol, corresponding to the sector between Villeta and Puerto Salgar.
“• The continuation of 21 housing projects, which represent more than COP$760 billion [US235 million] in revenues for the company, which are located in the main cities of the country.”

The new credit agreement is backed by Conconcreto’s COP$540 billion (US$167 million) equity in the “Pactia” real-estate private equity fund; other real estate valued at COP$58.3 billion (U$$18 million); and a fiduciary-rights security interest agreement in the Malachí Trust, whose underlying asset is a property worth COP$80 billion (US$24.7 million), according to the company.