CCR Rota Sorocabana approves BRL1.05B local notes issuance
TL;DR
CCR Rota Sorocabana approves BRL1.05 billion local notes issuance to fund a highway concession in São Paulo, covering 460 km with R$8.8 billion in investments over 30 years. The project leverages CCR's operational expertise and diversifies its portfolio, with 90% financing through corporate guarantees and 80% revenue from existing segments.
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CCR Rota Sorocabana approves BRL1.05B local notes issuance
CCR has secured the Rota Sorocabana highway concession in São Paulo, committing to a concession fee of R$1.601 billion and an estimated R$8.8 billion in investments over the 30-year contract period. The company, which previously operated parts of the route through its ViaOeste subsidiary, emphasized its strategic alignment with the asset, citing operational expertise and regional familiarity since 2005. The concession covers 460 kilometers of roads, including sections of the Castello Branco-Raposo Tavares system, and is structured to extend CCR's portfolio duration by 1.3 years while reducing reliance on its primary Autoban concession.
The project's capital structure plans for 90% financing through corporate guarantees from CCR's holding company, enabling high leverage while meeting the group's minimum profitability thresholds. Approximately 80% of projected revenue will derive from existing ViaOeste segments, which the company has historically managed. Management highlighted the concession's role in reinforcing CCR's presence in São Paulo and diversifying its asset base.
The São Paulo government divided the former ViaOeste concession into two blocks, with the Nova Raposo lot scheduled for auction on November 28. CCR has not yet committed to participating in the second auction but indicated it will evaluate opportunities based on return thresholds. Public concerns regarding tolls and expropriations were noted during the auction, though officials stated the project has been adjusted to address community feedback.
