Andino Investment Holding SA (AIHC1), Peru’s only publicly traded port operator, plans to raise as much as $170 million in debt markets this year as the company expands in response to Peru’s growing commodity exports.
Lima-based Andino is seeking to raise as much as $150 million by December to help fund the $260 million expansion of five regional airports and $20 million in 180-day notes next month for working capital, Chief Executive Officer Carlos Vargas said.
“Peru’s growth is coming from mining, oil and gas and energy investment,” Vargas said today in an interview from his Lima office. “Conditions couldn’t be better to issue debt on the international market.”
Andino last year raised $43 million from an initial public offering and $110 million in a bond sale through its Terminales Portuarios Euroandinos unit to prepay part of an $85 million loan from Goldman Sachs (GS) Group Inc. and invest in a $250 million port expansion through June 2014. Peru’s port operators will invest $3 billion in expansion projects over the next four years, according to the country’s port authority.
Peru, the world’s third-largest copper and zinc producer, has lined up $70 billion in mining and energy investment commitments over the next decade.
Andino and partner Mota-Engil SGPS SA (EGL), which currently ship fishmeal, coffee and ethanol, may invest in storage facilities to handle soybean shipments from Brazil once work is completed on the jungle port of Yurimaguas and the government awards an Amazon waterway concession to link Brazilian roads to Peru’s Inter-Oceanic Highway, Vargas said.
Andino, which seeks to triple capacity to handle 3 million passengers a year in Arequipa, Peru’s third-largest airport, is also looking to raise $60 million to finance a cargo logistics operation at Lima’s Jorge Chavez Airport, Vargas said.
Andino and partner Corp. America will bid this year for a concession to build the $400 million Chincheros airport near the Andean tourist destination of Cuzco, Vargas said.
Andino traded unchanged at 2.65 soles at 3:42 p.m. in Lima. The stock, which joined Lima’s General Stock Index (IGBVL) this month, has risen 10.4 percent this year more than the 5 percent gain of Peru’s General Index.
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