The Point for Latin America

Research evidence excerpt

The Point for Latin America

months after the typical period in February. Another key highlight is PINFRA

secured an amendment to their Michoacán concession to double the lanes in

Nueva Italia-Lazaro Cardenas segment (80km), an estimated P$6.4bn investment

to be funded by a tariff hike for freight vehicles on the Uruapan–Nueva Italia–

Lázaro Cárdenas segment and resources from the revenue sharing deal (until the

investment is recouped). We keep our Buy rating on valuation, together with a

good momentum for the sector with a significant number of potential projects

coming up on the back of Plan Carretero.

Andrés Cardona | Filipe Nielsen

Copasa (CSMG3.SA) - Copasa Secures Contagem and Betim Concessions,

Further De-risking the Investment Case

Copasa signed new concession agreements with Contagem and Betim,

municipalities that together account for 9.3% of the company’s revenue. We view

the announcement as another important de-risking event for the investment case.

The new agreements extend both concessions through 2073 under the same

regulatory framework adopted in the Belo Horizonte contract (30% of revenues),

preserving key shareholder-friendly features such as a pre-tax WACC, annual RAB

updates through a rolling-forward methodology, recognition of eligible

investments into the RAB, and gradual efficiency-sharing mechanisms.

Joao Pimentel | Felipe Lenza

Raizen (RAIZ4.SA) - Raizen's out-of-court reorganization was approved

Yesterday, Raízen’s out-of-court reorganization was approved. The Plan was

supported by holders of 81.6% of the Subject Claims (of which R$65.14bn in

subject credits and R$33.49bn in intercompany obligations, according to Brazil

Journal) held by Raízen’s unsecured financial creditors and was not challenged by

any creditor of the Group.