LatinFinance - January/February 2014 - 33

ProInversión's Rodríguez points to 16
road shows, participation in 21 events
overseas as exhibitors and 21 local
forums, and 16 business missions and
videoconferences with international
investors as of early December 2013 as
among the government organization's
efforts.
Its efforts are bearing some fruit.
ProInversión's deal pipeline is becoming
more organized and better structured,
says José Antonio Carbonero, head of
project finance Peru for BBVA. "This year
investment amounts have been defined, we
have seen detailed payment mechanisms
and new versions of the concession
contracts," he says.
Meanwhile, a broad contingent of
international sponsors and backers -
coming from Brazil, Colombia, Europe, and
Asia - are looking favorably at Peruvian
infrastructure investments.
International bond investors and bankers
will look at larger deals, while the local
markets can handle projects of $200 million
or $300 million - and sometimes more.
Peru's investor base, particularly pension
funds and insurers, has capital to deploy.
Insurance companies like infrastructure
investments since the assets match their

liabilities well, says Eduardo Tirado, chief
investment officer at Pacífico Seguros.
He is hoping for an uptick in
infrastructure financing deals coming to
market over the next six to 12 months.
"Annuities are going to continue growing
very fast, and we're going to need assets
coming into the market at that pace, and I
think infrastructure is one of them," he says.
"We need those projects to be accelerated
in the process of getting approvals so we
can finance them."
His firm is most comfortable with
projects that have both public and private
components. It also looks for long-term
assets in soles, matching the currency of
80% of its annuity commitments.
Pacífico Seguros has been investing in
real estate, which it considers an alternative
for some of its portfolio.
International investors are also standing
by. José Sanhueza, infrastructure managing
director for Chilean Penta Las Américas,
which manages some $600 million in
investments, says he's eager for more toll
road projects in Peru. Only one is in the
current ProInversión portfolio.
He and other investors want to know
what other names are coming, and also
if the projects will need international

investment. "If the projects don't have
high technical requirements or don't need
massive amounts of money, it won't make
sense for global players," he says.
Busy pipeline
Despite the delays, many are optimistic that
a number of large project financings are set
to come to market this year. Lima alone has
around $6 billion of infrastructure projects
under way, including $1.8 billion of deals
seeking private finance that were launched
in December.
Spanish multinational Ferrovial is one of
the international firms eying opportunities
generated by Peru's economic growth over
the past several years and an improving
environment for private investment.
Officials at the company say it is looking at
the transport and sanitation projects being
organized by ProInversión. These include
an international airport project, Proyecto
Chavimochic, estimated at $606.3 million,
and Longitudinal de la Sierra Tramo 2,
estimated at $552 million.
The biggest project in the pipeline,
though, is the second line of Lima's metro
system. ProInversión opened the selection
process for concessionaires last year. The
works are billed to cost some $5.7 billion. LF

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