The company’s IPO was Europe’s largest in 2004 and Spain’s biggest since 2001
- EBITDA increased by 39.7% in the period to 347.6 million euro, over 70% of which came from other countries
- The company’s growth strategy has led to four new infrastructure projects, in Spain, Ireland and the US Cintra is currently pre-qualified for a dozen projects in Europe and North America
- Cintra now manages 18 toll road concessions in Spain, Portugal, Ireland, Chile, Canada and the US, and over 215,000 parking spaces, and committed investment totals over 2 billion euro
Cintra, the toll road and car park operator, is celebrating its first year on the stock market, in which it has chalked up an 18% gain. Nevertheless, analysts’ target prices suggest the company still has sizeable upside potential.
Cintra was floated on the stock exchange on 27 October 2004 at 8.24 euro per share after a combined primary and secondary offering. The combined offering totalled 186,475,841 shares and represented 1,536.6 million euro, making it Europe’s largest IPO of 2004 and the largest in Spain since 2001. After the offering, Ferrovial continued to be the largest shareholder, with 62.03%, the remainder being free float.
The operation raised 500 million euro, enabling Cintra to continue its strategy of growth in the private-sector development of transport infrastructure.
On 1 July 2005, eight months after its flotation, Cintra was promoted to Spain’s blue-chip Ibex-35 index. On that occasion, Juan Béjar, CEO of Cintra, stated: “In recent months, we have made considerable efforts to explain our strategy and we continue working to obtain new concessions in the toll road and car park markets. Inclusion in the Ibex-35 may provide greater visibility to our activities, which we hope will continue to arouse interest among investors and the financial community.”
Growth: operating figures and new projects
In the last twelve months, according to the latest published figures, the company’s growth strategy has led to an increase of nearly 40% in EBITDA to 347.6 million euro, boosted by good traffic performance, higher margins and the entry into service of new toll roads in Spain and the United States.
Cintra is also expanding its international presence: 71% of EBITDA and 63.8% of revenues now come from other countries.
As a result of its growth strategy, Cintra has obtained four new toll road concessions in the last twelve months: Chicago Skyway and Trans-Texas Corridor, in the United States; the M-203, the only toll road concession awarded in Spain in 2005; and selection as preferred bidder for the M3 toll road in Ireland; the investment of this project is 600 million euro and the concession period runs for 45 years and will be potentially Cintra’s second toll road in that country.
The company is currently pre-qualified or bidding for twelve new toll road projects in Europe (Spain, Ireland, Italy, Greece and Poland) and the United States.
Entrance into the US market
Cintra is one of the world’s leading private sector developers of transport infrastructure it manages 18 toll roads in Spain, Portugal, Ireland, Chile, Canada and the US, and over 215,000 parking spaces.
One of its most emblematic projects is 407 Express Toll Route in Toronto, Canada, managed under a 99-year concession obtained in 1999 in what was the world’s largest-ever toll road privatisation and the largest-ever investment by a Spanish infrastructure company in a foreign toll road project.
In 2004, the company entered the US transport infrastructure concession market, a priority in its expansion plans: since 24 January 2005, Cintra has been operating Chicago Skyway, the first operating toll road to be privatised in the United States. At an investment of 1.83 billion USD, the operation consists of a 99-year concession to maintain and operate the elevated toll road.
Seven months after the acquisition, Cintra recouped 44% (206 million USD) of its initial investment in Chicago Skyway after completing a 1.55 billion USD refinancing deal in August 2005. The operation improved shareholder IRR (internal rate of return) by over 150 basis points. The refinancing deal included placing a 1.4 billion USD bond issue in the US, the largest-ever toll road bond issue in that country.
Strategic partner of the State of Texas
In December, Cintra became a strategic partner of the State of Texas for 50 years in designing and planning the Trans-Texas Corridor, one of the most ambitious infrastructure projects ever undertaken there. Cintra will develop a Master Plan to define the infrastructures to be built in the corridor and the optimal financing formulae or systems for each project. The Trans-Texas Corridor (TTC-35) is a multi-use transport corridor up to 360 metres wide and 1,300 km long, running from the Mexican border in the Lower Rio Grande (MacAllen) area to the Oklahoma state line north of Dallas.
