Astris Finance helps local and Colombian Sponsors channel more than USD 150m of limited recourse project debt to finance the extension of Autopista del Nordeste in the Dominican Republic. BTA is the second road concession in the Country that reaches financial close: Astris Finance was Financial Advisor on both projects.
Boulevard Turistico del Atlántico C. por A. reached closing in connection with the US$151mm long-term financing of the 123 km toll road on the Dominican Republic’s Samaná peninsula. BTA was advised by Astris Finance LLC (www.astrisfinance.com).
Boulevard Turistico del Atlántico C. por A. (“BTA” or “the Company”) is a project company established by a group of local and regional sponsors, led by Grupo Odinsa, the number one toll road operator in Colombia, to finance the rehabilitation of 99 km of existing road (Nagua-Sánchez-Samaná-El Limón-Las Terrenas), construct 24 km of new road (from Las Terrenas to Majagual - close to the El Catey international Airport), and operate and maintain the toll road for a period of 28 years (“the Project”). BTA will enhance intra-peninsular travel as well as improve connectivity to Nagua and the El Catey International Airport. The project is a natural extension of the Autopista del Nordeste Highway, which connects Santo Domingo with the Samaná Peninsula, now a major center of tourism in the DR. Autopista del Nordeste was developed by the same set of Sponsors, who were advised by Astris Finance starting in 2004; the road was financed in 2006 via a MIGA-enhanced international bond issuance.
Under the BTA Concession Contract, the Government assumes the Project’s traffic risk and provides a Minimum Revenue Guarantee to the Company. Excess revenues beyond the minimum guaranteed revenues are shared between the Company and the Government through a mechanism designed to give both the Company an incentive to generate increased revenues and the Government a return for its minimum revenue guarantee obligation.
The 15 year maturity financing was raised from four agencies: (i) the IADB – Inter American Development Bank; (ii) the EIB – European Investment Bank, iii Proparco – Société de Promotion et de Participation Pour la Coopération Economique; and (iv) CAF – Corporación Andina de Fomento.
Dean Hull from Astris Finance said: “The recent macroeconomic crisis made financing this Project a tough challenge. We crafted a robust structure that revolved on the project’s flows beyond the government’s minimum revenue obligation and that relies on the political risk coverage that the strong lender team provides. The project has a strong developmental angle and is the first-ever project finance operation that brings together this specific group of multilateral lenders.”
Construction began in 2008 funded by equity and a Bridge Loan that was structured by Astris Finance and arranged by Citibank Dominican Republic. The road will open to traffic in early 2012.