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Sovereign investment fund from Abu Dhabi, with around US$ 5 billion in assets in Brazil, assumes billionaire debt from Invepar and takes control of the Rio de Janeiro subway
The Mubadala group, sovereign investment fund of the Crown Prince of Abu Dhabi, of the United Arab Emirates, wants to sell Rota das Bandeiras, in São Paulo, responsible for the D. Pedro Corridor, which has the D. Pedro I, in the region of Campinas, as the main road in the corridor, informed yesterday (4/16) the columnist of the newspaper O Globo Lauro Jardim.
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The investment fund acquired, for the first time, a stake in Rota das Bandeiras last year, for BRL 2 billion, taking complete control of almost 300 kilometers of highway, which crosses 17 municipalities in the region, with more than 2,5 millons of citizens. The sale should net Mubadala more than 4 billion reais (722,75 billion dollars).
According to information from the newspaper O Globo, the sovereign investment fund hired the bank BTG Pactual to negotiate the sale of the concessionaire.
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The Dom Pedro Corridor is located on a strategic axis for transporting production, close to the Viracopos International Airport, and connects the Campinas region with the Paraíba Valley.
The municipalities that make up the area under the concession of Rota das Bandeiras are Artur Nogueira, Atibaia, Bom Jesus dos Perdões, Campinas, Conchal, Cosmópolis, Engenheiro Coelho, Igaratá, Itatiba, Jacareí, Jarinu, Jundiaí, Louveira, Mogi Guaçu, Nazaré Paulista, Paulinia and Valinhos.
The highways that make up the Dom Pedro Corridor are Rodovia D. Pedro I (SP-065), Ring Road José Roberto Magalhães Teixeira (SP-083), Rodovia Professor Zeferino Vaz (SP-332), Rodovia Engenheiro Constâncio Cintra (SP-360 ) and Romildo Prado Highway (SP-063).
Arab fund Mubadala assumes Invepar's billionaire debt and takes control of the Rio de Janeiro subway
Mubadala, an investment fund from the United Arab Emirates, took over, on November 08, control of the Rio de Janeiro Subway Concessionaire, MetrôRio, in place of Invepar. The process authorizing the change, signed by Governor Cláudio Castro, was published in the Official Gazette of Rio de Janeiro.
The Rio subway was previously under the control of Investimentos e Participações em Infraestrutura SA (Invepar), the majority shareholder of São Paulo International Airport, in Guarulhos.
According to Globo columnist Ancelmo Gois, the Arab fund helped with the restructuring of R$ 2.5 billion in debt at Invepar, in September. In exchange, it was agreed that Invepar would relinquish the concession for the subway and the Yellow Line.
Mubadala has eyes on the collapse of Eike Batista's empire
Sovereign Fund Mubadala, with around US$5 billion in assets in Brazil – including Petrobras' former RLAM refinery and three subway lines in Rio de Janeiro – has its eyes on the collapse of the empire of commodities by Eike Batista and, now, seeks more problematic assets in the country.
Operation Lava Jato was an important moment for Mubadala. The Crown Prince of Abu Dhabi Fund entered into action to negotiate the purchase of a toll road in the state of São Paulo, from Odebrecht, leveraging the experience in Brazilian corporate debt and corporate restructuring that he acquired during 11 debt-for-equity swap transactions with Eike.
And it doesn't stop there: the focus on impaired assets remains. “We continue to focus on complexity, assets tied to former Lava Jato companies,” Fahlgren said.
Brazil is one of the main investment targets of the Mubadala Sovereign Fund
According to the executive, the company has just closed its first specific fund for Brazil, worth US$ 311 million, and is currently raising funds for a second, larger fund.
In total, Mubadala Capital has US$16 billion under management, and Brazil is one of its four main areas of investment, along with global private equity, venture capital and a hedge fund.
Mubadala's most recent investment was the acquisition of the RLAM refinery, which belonged to Petrobras, for US$ 1,8 billion. The asset is a bet on a competitive fuel market that is in the sights of consumers and politicians ahead of the 2022 presidential elections.
“Political turmoil is part of the country and it will not stop,” he said. “When we see temporary shifts in the market driven by an election, it is an opportunity to invest for the long term because of reduced competition.”
Mubadala aims to reduce RLAM's carbon footprint. While many investors have completely avoided oil projects for environmental reasons, the sovereign wealth fund sees an opportunity to cut emissions from existing infrastructure still in operation in the coming decades.
In addition to former billionaire Eike's assets, Mubadala is targeting wind and solar parks in Bahia
Mubadala is also eyeing wind and solar farms in Bahia to supply the refinery with as much renewable energy as possible. It also seeks to increase biofuel production at the facility and expand pipelines to eliminate the carbon-intensive use of tanker trucks for distribution.
In total, Mubadala estimates more than $1 billion in potential improvements. “We can put our capital into a polluting asset and make it better,” Fahlgren said.
