Spanish Road ABS Under Construction

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Spanish Road ABS Under Construction

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A securitization of all or part of Empresa Nacional de Autopistas (ENA) is being considered to refinance the E1.6 billion loan obtained by the consortium that recently purchased the Spanish motorway company. A market participant with knowledge of the deal says it will feature a monoline wrap. ENA runs six toll roads in Spain.

ENA was bought from the Spanish government last month by a consortium lead by Grupo Sacyr, a construction company, and Santander Centro Hispano. A group of Spanish savings banks hold a 25% stake in ENA and a Spanish investment firm called Torreal holds 5%.

Road securitizations have been completed in the U.K. as part of the so-called public private partnership initiative where private companies buy or assume the responsibility for maintaining roads previously looked after by the government. Most recently, there was a whole business deal for the M77 refurbishment project in Glasgow, Scotland. That deal was arranged by Royal Bank of Canada.

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