Ferrovial subsidiary raises funds for Dallas Highway
By Steve Skinner21 June 2010
LBJ Infrastructure Group has reached financial close on the US$ 2.7 billion LBJ Highway in Dallas, Texas, US.
The Group has raised the final US$ 615 million through the placement of private activity bonds (PABs) on the US municipal bond market to help finance construction of the highway concession.
The LBJ Infrastructure Group is a consortium led by Cintra, a subsidiary of Ferrovial. Funding for the 21.2 km long highway includes US$ 496 million from the Texas Department of Transport, a Transportation Infrastructure Finance and Innovation Act (TIFIA) credit of US$ 850 million and US$ 665 million from LBJCintra, Meridiam and the Dallas police and fire pension fund.
Once constructed, the highway will be operated under a 'managed lanes' system over a concession period of 52 years. It will feature an electronic free-flowing tolling system to enhance the smooth movement of traffic and increase capacity. The concession involves the construction, maintenance, management and financing of the highway, sections of which are scheduled to open from 2013 onwards.
CEO of Cintra, Enrique Diaz-Rato said, "Reaching final closure on a project of this size in such volatile financial market conditions as those we're currently experiencing is a real success. The financial closure of the LBJ highway comes on top of that secured in December for the North Tarrant Express in Texas and demonstrates the market's interest in high quality assets."