AIRPORT CITY, Israel, May 26, 2016 /PRNewswire/ -- Shikun & Binui Ltd. (TASE: SKBN.TA), a global construction and infrastructure company headquartered in Israel, announced today the financial closing of the Cundinamarca 010 Toll Road Project in Colombia. The project is part of a multinational plan to upgrade the country's road infrastructure system.
The BOT project is located near the city of Bogota, the capital of Colombia and includes financing, construction, rehabilitation, operation and maintenance of a toll road which will span over approximately 154km.
The scope of the project (including the cost of construction, financing and operating costs during the period of construction and additional expenses) is currently estimated at approximately US$640 million. The construction shall be performed by Shikun & Binui's subsidiary - SBI, Shikun & Binui Group's international contracting subsidiary.
The engagement in the project is with the Government Infrastructure Authority at the Colombian Ministry of Transportation (ANI). The term of the concession is 25 years, with an option to extend up to 29 years.
As part of the financial closing, led by the Concessions Division at Shikun & Binui, the Group entered into agreements with a number of financial entities, both local Colombian and international, for long term financing of approximately US$460 million for the project.
Approximately one month ago, Shikun & Binui reported that it completed the financing for the construction, operation and maintenance of its toll lanes project in metropolitan Houston, Texas, USA, in the scope of approximately US$1 billion. In Texas, just as in Colombia, the construction will be performed by SBI, Shikun & Binui Group's international contracting subsidiary.
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."
Shikun & Binui CEO, Yaron Karisi, 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."
About the Shikun & Binui Group
The Shikun & Binui Group is a global construction and infrastructure company that operates in Israel and internationally in seven segments: 1) infrastructure and construction contracting outside of Israel; 2) infrastructure and construction contracting within Israel; 3) real estate development within Israel; 4) real estate development outside of Israel; 5) renewable energy; 6) concessions; and 7) water. The Group's activities focus on large, highly complex projects carried out for entities in private and public sectors with a focus on sustainability.
This summary announcement was prepared solely for the convenience of the reader and does not replace Shikun & Binui Ltd.'s (hereafter – "the Company") full report. The information contained in this announcement is, by its nature, incomplete. All of its contents are provided as a supplement to the Company's report, and are subject to the declarations therein stated. This announcement includes forecasts, assessments, estimates and other information relating to the Company or its subsidiaries, or to other parties or to future events and matters, the extent of whose realization is not certain and is not under the sole control of the Company (forward-looking information, as defined in the Securities Law-1968). The key facts and data serving as the basis for this information are facts and data, among others, related to the current status of the Company and its businesses, facts and data relating to the current status of the operating segments in which the Company engages in its areas of operation, and other macroeconomic facts and data known to the Company on the preparation date of this presentation.
It is understood that forward-looking information does not constitute a fact and is based solely on subjective assessments. Forward-looking information is uncertain and for the most part, is not under the Company's control. The realization or non-realization of the forward-looking information will be influenced, among others, by the risk factors that characterize the Company's operations, as well as developments in the general environment and external factors that impact the Company's operations. The Company's future results and achievements could differ significantly from those presented in this presentation. The Company is not obligated to update or modify the said forecast or assessment, and is not obligated to update this announcement. This announcement does not constitute an offer to purchase the Company's securities or an invitation to receive such offers. An investment in securities in general, and in the Company in particular, carries risk. One must take into account that past data do not necessarily indicate future performance.
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SOURCE Shikun & Binui Ltd.