By Brazil Stock Guide – At least four investment groups, including France’s Vinci Concessions, XP Inc. (NASDAQ: XP), a joint venture between Construcap and Spain’s Copasa (BME: CPA), and Way Concessões, have submitted proposals for Brazil’s Rota Sertaneja road concession. The auction is set for Thursday (Nov. 6) at São Paulo’s B3 stock exchange, according to Valor Econômico.
The 530.6-kilometer corridor connects Goiânia, in Goiás state, to Uberaba and Fronteira, both in Minas Gerais, near the São Paulo border. The concession, valued at R$ 5.3 billion ($940 million) in planned investments, includes 42 km of duplications, 4 km of bypasses, and 31.8 km of additional lanes. Over the 30-year term, operational expenses are projected to reach R$ 4.9 billion ($870 million).
Under the federal government’s current model, the winning bidder will be the one offering the largest discount on the base toll tariff, set at R$ 0.13482 per kilometer. If the discount exceeds 18%, the company must inject additional equity tied to the project.
Q&A Highlights from Vinci and XP
During recent earnings calls, Vinci executives reaffirmed the company’s long-term focus on Latin American transport assets. “Brazil remains one of our top markets for infrastructure expansion,” said a Vinci spokesperson, noting that the group’s regional portfolio grew 11% year-over-year in operating income during the third quarter.
XP Inc., which has been diversifying into real assets, said its infrastructure division posted a 9% increase in AUM compared with the previous quarter. The firm’s adjusted net income reached R$ 1.12 billion, up from R$ 1.03 billion a year earlier. CFO Bruno Constantino stated that the Rota Sertaneja concession aligns with XP’s “commitment to long-term investment in sustainable infrastructure.”
Meanwhile, Construcap and Copasa are betting on joint expertise in construction and operation to strengthen their bid, while Way Concessões seeks to consolidate its position in the Midwest and Southeast logistics corridors.
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