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ICA's Sarre and Papagos prisons: Social project bond first
30 November 2011
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[ica]
[ssp]
[banobras]
[certificados bursatiles]
ICA closed the Ps9.7 billion ($709 million) financing for the Sarre and Papagos prison PPPs in Mexico on 28 September. The deal breaks down into a Ps7.1 billion non-recourse certificados bursatiles bond issue and Ps2.6 billion in equity. It is the first entirely commercially financed greenfield social infrastructure concession in the country.
The construction plus 22-year build-operate-transfer concession includes two 2,500-inmate facilities in Jalisco and Sonora states. Mexico’s federal Secretaría de Seguridad Pública (SSP) awarded the Sarre and Papagos projects to ICA as part of a closed tender for 12 detention centres in December 2010. The grantor awarded nine of facilities with the remaining seven going to local construction companies. The concessions are the first detention centres for ICA.
The 20.8-year bond issue is split pari passu between a Ps5.323 billion tranche that carries an all-in fixed interest rate of 10.1% and a UDI-denominated Ps1.777 billion tranche that carries an all-in real...
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