New York, NY, July 15 (Bernama-GLOBE NEWSWIRE) — Global Infrastructure Partners (“GIP”), a leading global, independent infrastructure investor, announced today that its credit fund, GIP Spectrum Fund, L.P., along with its affiliates (together “GIP Spectrum”, “Spectrum” or the “Fund”), previously closed on a $67.5 million participation in an aggregate $75.0 million Second Lien Term Loan investment (the “Term Loan”) in Grupo Via Central S.A. (“GVC”). GVC was established by Sacyr, NGE, Saceem, and Berkes (collectively “the Sponsors”), to design, construct, rehabilitate and maintain a 273 kilometer freight railroad connecting central Uruguay to the capital port city of Montevideo (“Ferrocarril Central” or the “Project”). The Project is underpinned by availability payments via a Public Private Partnership contract (the “PPP Contract”) between GVC and the Government of Uruguay (“GoU”) through the Ministry of Transport and Public Works.
Proceeds from the Term Loan, together with a first lien senior bank term loan, advance payments from the GoU and common equity from the Sponsors will fund the construction of the ~$1.1 billion Project. Ferrocarril Central is expected to reach operations in the third quarter of 2022. The Project will allow movement of various cargo (forestry, agriculture, containers, fuel) and pulp from a greenfield 2.1 Mtpa eucalyptus pulp mill under construction in Paso de los Toros. The Project was awarded to GVC in June 2019 under an availability-based concession backed by the GoU (Baa2 / BBB) for a period of 18 years, out of which approximately 3.25 years will be the construction and rehabilitation of the railroad line and 14.75 years will be maintenance of the Project.