OHLA - Sarria Daily Comments

When OHLA reports 3Q 21 numbers on Friday we are expecting the US division to contribute to a strong order book. The passage of the US$550bn infrastructure bill in the US (last week) and improving completion guarantee lines will support bond and equity price levels. OHLA has recently won a number of transport related contracts in the US, including a US$2.5 light rail contract in Maryland (alongside ACS). The stock is finally above €0.80 up from €0.63 in the last month. We remain long OHL for 6% of NAV, initially taken via the 2022 unsecured bonds. In the restructuring we opted to take the haircut and equity whilst extending our maturity to March 2025.