Innovation in financing

At Cintra, we bring innovation to all phases of the projects we take on, and one of those is financing. We have developed efficient financing structures that are capable of meeting the specific needs of the projects, and we have a proven track record in the most diverse financial environments. 

Throughout the years, we have remained in the vanguard of investment, designing more efficient financial structures and developing novel solutions and instruments that have paved the way for the rest of the sector. 

In 1996 we secured the first infrastructure bond in local currency during the development of the Route 5 highway, Talca-Chillán, in Chile. On this occasion, we used the guarantee of a monoline insurance company, or debt insurance company, for the first time, which was later extended to the country’s entire concessionary program. 

Financing for complex projects 

In our work, it should be noted that we are able to obtain private financing for large projects. For example, the financing for the M4/M6 highway in Ireland in 2003 was the first in the Irish program and demonstrated that it is not only possible to collect private investment for very demanding contracts to distribute risk, but that competitive prices can be achieved. 

At Cintra, we are also focused on greenfield projects (infrastructure projects that start from nothing) characterized by their high potential for value creation, their high initial return rates, but also the high risk assumed (construction, financing, operation and traffic). In these projects, efficient financial work is key. 

Innovation to secure long-term financing is another fundamental piece for taking on complex projects. In this sense, the 2001 refinancing with bonds for the Via do Infante highway in the Algarve region of Portugal is paradigmatic. This operation entailed the first project bond in Portugal and the first truly long-term project bond in continental Europe, with a term of 26 years. 

Public-private partnerships or 3P 

Growing privatization and the loss of investment capacity of public administrations has required the private sector to become increasingly involved in the funding of major works. In this context, public-private partnerships, PPP or 3P, have proven to be a very efficient tool. 

We have used the 3P model in many of our projects. In 2009, the LBJ highway in Dallas, Texas, United States became the largest public-private partnership in the history of this North American country to date. At that time, the managed lanes model was groundbreaking and today it is spreading throughout the rest of the United States.