LIMA, Peru--(BUSINESS WIRE)--
Graña y Montero S.A.A. (GRAM) (BVL:GRAMONC1) (“the Company” or “Graña y Montero”) a leading Engineering and Construction company, announced today that it signed a debt recognition agreement with CHUBB Insurance Peru for the repayment of US$ 52.5 million derived from the execution of the performance guarantee for the Southern Gas Pipeline project. The above-mentioned agreement has a 1-year maturity starting today and will be repaid in full after said period.
The agreement will have a positive effect on Graña y Montero’s cash flow and will be repaid with the proceeds from the sale of non-strategic assets to be defined by Graña y Montero’s Board.
Luis Díaz Olivero, Graña y Montero’s Corporate CEO, indicated that this new agreement is a clear proof of Chubb’s confidence in Graña y Montero’s standing. “Those who have dealt with us know of our professionalism and commitment to fulfill all of our obligations. As a result, we are seen as trustworthy.”
As noted previously, Chubb Insurance issued the performance guarantee for the Southern Gas Pipeline project. The guarantee was – as informed by Graña y Montero on January 24, 2017 –executed after Peru’s Ministry of Energy and Mines terminated the project´s concession contract.
About Graña y Montero S.A.A.
Graña y Montero is the largest and most important Engineering and Infrastructure Company in Peru. It has 26 companies in 4 Business Areas and operates in 5 countries in Latin America. It is the only South American construction company listed in the Lima Stock Exchange and in the NYSE. It has 83 years of operations, due to its corporate values, which have always guided the behavior of its employees. It has been an example in the region for its good practices in corporate governance and has been continuously considered as one of the most admired and renowned firms of the country.