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Shikun & Binui, a global construction and infrastructure company headquartered in Israel, has signed credit agreements with Inter-American Development Bank (IDB), Bancolombia, CorpBanca and Financiera de Desarrollo Nacional (FDN) for the financial close of the East Cundinamarca bypass concession in Colombia.

Through subordinate and senior debt facilities, the financial entities have agreed to provide about US$460 million to finance the project, which will be developed on a build, operation and transfer (BOT) basis.

The total project investment (including the cost of construction, financing and operating costs during the period of construction and additional expenses) is currently estimated at US$640 million.

The road concession includes a 153 km north-south arterial road in the eastern sector of Bogotá. The PPP contract involves the design, construction, financing, operation, and maintenance of the proposed bypass. The term of the concession is 25 years, with an option to extend up to 29 years.

Currently, Shikun & Binui is the sole shareholder of the project after last September, Perimetral Oriental de Bogotá, a subsidiary of CI Grodco, sold its 25% stake in the project to the Israeli firm.

Moshe Lahmani, Chairman of Shikun & Binui, commented:

"The financial closing of the project in Colombia is an additional significant milestone in realizing the Group's international strategy to expand its international infrastructure activity, and diversify its global operations. The completion of the financial closings in the USA and now in Colombia will contribute to the Group's record backlog. We will continue to compete for new mega projects in line with our strategical targets."

Yaron Karisi, Shikun & Binui CEO, added:

"Shikun & Binui is implementing its business strategy. Shikun & Binui brings its project skills and capabilities, excellence, professionalism and decades of experience in successfully performing similar projects. We shall similarly continue to enhance our international activity."