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Today, June 30, Odebrecht TransPort, an Odebrecht Group urban mobility, highway, airport and logistics company, announced transactions which will reinforce its cash flow by BRL 625 million “to give continuity to investments which contribute to improving infrastructure, a revival in the country’s economic growth and creating jobs”, said the company CEO, Paulo Cesena.

One of the Odebrecht TransPort transactions, in an approval phase by its Board, will be the issue of private debentures, with a 5 year term, to the value of BRL 350 million by its wholly-owned subsidiary, Odebrecht Highways.

In addition, Odebrecht Highways signed a sale and purchase agreement with CCR, through which it will transfer its total shareholding in the ViaRio concessionaire in Rio de Janeiro.

ViaRio, which will be opened shortly, is an expressway linking Barra da Tijuca to Deodoro and connects the largest Olympic Game facilities, such as the Athletes’ Village, Olympic Park and Radical Park. With this, Odebrecht Highways divides the company equally with CCR and Invepar, each holding 33.33%.

A further Odebrecht TransPort subsidiary, called Montgomery, received a firm proposal from CCR to purchase its 15% share in ViaQuatro. This is the concessionaire for the Yellow Line 4 of the São Paulo subway, which connects the Center to Zona Oeste. CCR currently holds 60% of ViaQuatro; Odebrecht TransPort, via Montgomery, 15%; RuasInvest also has 15% and Mitsui 10%.

As in the case of ViaRio, completion of the ViaQuatro transaction depends on legal authorizations. Both operations represent a cash flow entry of BRL 275 million for Odebrecht TransPort and its subsidiaries.

For Odebrecht TransPort, “the operations taking place now result from an analysis, which should be continuous and permanent, of the country’s and market’s situation, considering, among other points, the need for the total or partial demobilization of shareholdings in assets which are not considered strategic”.

“The economic crisis and sharp downturn in credit available to fund projects has forced us to re-evaluate our strategic actions, particularly associated to the allocation of capital and business diversity”, said the Odebrecht TransPort financial director, Marcelo Felberg.

“Our focus”, adds Felberg “will be on projects in our portfolio in which we have share control or a significant stake and that also offer opportunities for growth and a risk profile scale adjusted to the appropriate return”. 

For Paulo Cesena, “federal government measures are signaling the possibility of recovering an environment favorable to investment”. He adds: “I am confident that the economic team will create an efficient financing mechanism that serves both the projects from phases prior to the Logistics Investment Program and future concessions, as this is the quickest way of attracting investors, creating jobs and getting the economic growth clock running”.
 
Portfolio
Following these transactions, Odebrecht TransPort will hold 17 assets in its portfolio:
7 wholly-owned subsidiary Odebrecht Highways concessions (Rota das Bandeiras, SP; Rota do Oeste, MT; Rota do Atlântico and Rota dos Coqueiros, PE; Bahia Norte and Litoral Norte, BA and Rota das Fronteiras, PR); 
4 Odebrecht Mobility subsidiary concessions, in partnership with Mitsui and the Japanese government investment fund (Line 6 of the São Paulo subway, SuperVia and Rio de Janeiro and Goiânia LRTs); 
1 airport – Rio Galeão;
4 logistics companies (Embraport, Liquiport, the Suape Sugar Terminal and Logum);
1 company to install and maintain bus shelters and the commercial operation of publicity hoardings in São Paulo (Otima)