The Concessionary Company Ruta del Algarrobo, the subsidiary of Sacyr, for the Route 5 Los Vilos - La Serena road concession is preparing a debt issue of US$ 350 million. The bond will be for US$ 350 million, with a 25-year maturity and an A + risk rating. 

The Route 5 Los Vilos concession involves the development of a total extension road of 245 km in Route 5 Los Vilos - La Serena section that starts in the north of Los Vilos and ends in its interurban section at the south of Coquimbo, Chile. For the interurban section, different types of works are proposed, these being update, complementation and new; among others, treatment of slopes, widening of platform, rectification of geometric layout, new structures, service streets, pedestrian walkways, etc.

The funds raised with the operation, which is in hands of BTG Pactual and Santander investment banks, will be used to pay liabilities to Itaú Banc and BancoEstado and to finance the construction of the works on the route between Vallenar and La Serena.

The company's roadshow, according to the acquainted with the process, will only be carried out with Chilean firms, and will mainly target institutional investors, such as insurance companies.