Gia Closes USD 184m Honduras Civic Center Refinancing
Desarrolladora y Operadora de Infraestructura de Honduras (DOIH), a wholly owned subsidiary of Mexican developer Constructora y Edificadora GIA+A (GIA) has successfully closed a financial restructuring deal covering the project debt of the Government Civic Center project in Honduras, according to a company spokesperson.
Jorge Moguel, GIA’s head of concessions for Central America and Colombia, said that DOIH has obtained a dual-tranche 22.5-year financing in USD and Lempiras (HNL) for the equivalent amount of USD 184m.
The proceeds will be used to refinance existing debt, to cover additional costs requirements and for the repayment of subordinated debt provided by the sponsor during the construction period. The financing includes a separate tranche as well to finance some outstanding payments from the government related to force majeure costs incurred during the COVID-19 outbreak that are currently under discussion.
The lenders participating in the transaction included local pension funds INJUMPEMP, INPREMA, IPM and IHSS, as well as commercial lenders Banco Lafise, Banco Ficohsa, Banco de Occidente, Banco Atlantida and Banrural.
This successful refinancing reflects the status of the project that started full operations in 2021. “The quality of the concession contract demonstrates GIA’s ability to deliver large infrastructure projects in a complex environment,” said Moguel.
Atlantico Capital acted as financial advisor to GIA, with Local law firm Garcia & Bodan acting as counsel to the borrower.