ING and Santander sell debt from Spanish highways in liquidation

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ING and Santander sell debt from Spanish highways in liquidation

ING and Santander have announced that they have sold debt from Spanish highways in liquidation, as the government has not reached an agreement with the banks for the rescue of the projects.

As we reported in December 2016, the Spanish government will finally have to take over the nine toll motorways that are currently bankrupt for an estimated cost of €5 billion (US$5.3 billion).

ING has recently sold approximately €100 million (US$107 million) of debt to distressed investors. 

Santander bank has sold €350 million (US$374 million) to JP Morgan, Goldman Sachs and Deutsche Bank, which acted on behalf of Taconic Capital, Strategic Value Partners (SPV Global) and King Street.

The three vulture funds have accumulated approximately 70% of the debt associated with the radial highways in Madrid, as previously they have acquired more debt from other banks, such as CaixaBank and Sabadell.

CaixaBank sold the debt from R-3 Madrid-Arganda, R-5 Madrid-Navalcarnero and Alicante bypass. According to sources, the bank sold approximately €100 million (US$112.5 million) of debt to Taconic Capital. Sabadell also sold €240 million (US$256 million) of debt.

The nine toll roads in bankruptcy are namely:

  • 4 radial highways in Madrid, R-2, R-3, R-4, and R-5
  • Alicante bypass highway
  • M-12 Barajas Airport - Madrid highway
  • Madrid - Toledo highway
  • Cartagena - Vera highway
  • AP-36 Ocaña - La Roda

The consortium in charge of R-3 and R-5 radial highways is formed by Abertis, which has a 35% stake in the concessionaire (Accesos de Madrid). Sacyr owns 25% and Bankia and ACS 20% each. 

The Alicante bypass highway concessionaire (Ciralsa) is controlled by ACS, with 50%, and by Abertis and Globalvia, with 25% each.

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