Palmillas-Apaseo El Grande toll road

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Palmillas-Apaseo El Grande Toll Road was a 86 km, four-lane, high specification toll road in the states of Queretaro and Guanajuato, that created a new link between the Mexico City metropolitan region, the Bajio region, and the North. The highway provided a bypass around the city of Queretaro and reduced congestion, while also improving environmental and highway safety conditions. The project included the construction of nine interchanges, 15 bridges and 29 vehicular overpasses and underpasses. In November 2012, Autovia Queretaro SA de CV (Conoisa), a subsidiary of ICA SAB de CV (ICA) was awarded the 30-year greenfield contract to build, operate, exploit, conserve and maintain Palmillas - Apaseo El Grande highway, through an international bidding process by Mexico's Secretariat of Communications and Transportation (SCT). Conoisa fulfilled all the required criteria of the bidding documents and offered the highest initial payment, which was the variable to determine the winer. The price of the construction amounted to approximately US$ 403 million (MXN 5,313 million). The concession had a total estimated value of approximately US$ 741 million (MXN 9,630 million). Financial closure was reached on November 5, 2013, and ICA made an initial draw on a $434 million (MXN 5.68 billion) debt financing. Banobras, Banorte and Santander arranged the 10-year debt, which featured a full cash sweep and a two-year grace period on interest, covering the road's construction period. Pricing started at about 275bp over TIIE, and stepped up to 350bp, though ICA agreed a 10-year swap that fixed the rate on 80% of the debt to 6.92%. The debt had a base-case debt service coverage ratio of 1.2x, according to lender models. ICA also closed a 17-year $69 million (MXN 900 million) subordinated contingent liquidity facility with Fonadin, the government-sponsored infrastructure fund, which provided additional comfort to the senior lenders during the project's operational period. $434 million debt is recorded under private debt since it wasn't specified what part of it came from Banobras (Local Public Bank).