Corporate with the best equity market strategy; Andean corporate with the best capital market strategy

Jul 1, 2014

An Andean infrastructure push is spurring business for construction companies — and raising their chances in the markets

The region-wide push for more and better infrastructure in Latin America — and particularly the Andean region — has been welcome news for construction companies.

But for Peruvian firm Graña y Montero, which operates mainly in Peru, Chile and Colombia, it has also created a problem, albeit a good one: choosing which projects to take on.

"The difficult part, always, is being very disciplined at the moment of adjudication," says Mario Alvarado, chief executive of Graña y Montero, of the bidding process for infrastructure projects. "The temptation of getting a project is strong, so discipline and patience is something that’s difficult to hold onto in this type of business."

The company’s position in a critical industry for the Andean countries spurred interest for its US listing last year. The firm raised $474 million in an IPO of American Depositary Receipts in July. Strong oversubscription pushed the deal larger than planned, and...

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