Shikun & Binui Colombia project financing closed

Shikun U'Binui project  photo: company
Shikun U'Binui project photo: company

The $640 million-project involves upgrading a road system, including construction of a 154-kilometer toll road.

Arison Holdings Ltd. subsidiary Shikun & Binui Holdings Ltd. (TASE: SKBN) today announced that it had closed the financing for its Cundinamarca project in Colombia. The project is part of a multinational plan for upgrading the road system in the country.

Cundinamarca is a build, operate, transfer (BOT) project for financing, constructing, repairing, operating, and maintaining a 154-kilometer toll road near the Colombian capital of Bogota. Its value is currently estimated at $640 million (including construction, financing costs, and operation during the construction period and other expenses).

The contract in the project is with the government infrastructure authority in the Colombian Ministry of Transport, and the franchise is for 25 years.

As part of the financial closing of the project, the group contracted with a number of Colombian and international financial entities for $460 million in long-term financing for the project.

Shikun & Binui chairman Moshe Lahmani said, "We will continue to compete for mega projects around the world, in line with our strategic concept and diversification of our portfolio."

Published by Globes [online], Israel business news - www.globes-online.com - on May 26, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Shikun U'Binui project  photo: company
Shikun U'Binui project photo: company
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