Macquarie Asset Management makes €60 million debt investment in Spanish AG-31 road

Macquarie Asset Management, on behalf of its institutional clients, has provided around €60 million of debt financing to a consortium which operates the AG-31 road in northern Spain.

The 19-kilometre high-capacity dual carriageway (autovía) in Galicia provides an essential link between the town of Celanova and the provincial capital Ourense via the A-52 motorway. The road has been operational since 2013 under a concession granted to COPASA (70 per cent) and Extraco (30 per cent) which is valid until 2040.

Macquarie Asset Management’s institutional clients are the sole lenders in the financing, which provided a bespoke debt solution comprised of a term loan and a debt service reserve facility to offer the borrower greater flexibility in their liquidity management.

Tom van Rijsewijk, a Managing Director at Macquarie Asset Management, said: “The AG-31 road has recovered well through the COVID-19 pandemic and faster than many other roads due to the essential nature of the route. Its strong operating history and transparent concession agreement make this long-term debt solution well-aligned with our investors’ interests. We are therefore pleased to provide this long-term financing in partnership with its shareholders COPASA and Extraco.”

Francisco Javier Ramos, Head of Concessions at COPASA, said: “Macquarie Asset Management has demonstrated a great capacity and ability to understand our commitment to this project, alongside the resilience and potential of this asset even under extraordinary circumstances presented by the global pandemic. The tailor-made long-term financing solution has fit perfectly with our needs.”  

Macquarie Asset Management’s private credit platform has been financing Spanish infrastructure projects for more than three years, investing over €550 million in the local power and renewable energy sector.