Cost of Capital Estimation for Highway Concessionaires in Chile

Table 3

Betas of debt for representative companies ().

Representative company	Interest coverage rate	Company’s risk classification	Spread	Country ERP	Beta of debt
Transurban Group	1,58	B	5%	6.28%	0.80
Beijing Capital Co., Ltd.	3,26	A−	1.20%	7.50%	0.16
Chongqing Road & Bridge Co., Ltd.	16,4	AAA	0.40%	7.50%	0.05
Dongguan Development (Holdings) Co., Ltd	2,38	BB+	2.12%	7.50%	0.28
Fujian Expressway Development Co., Ltd.	2,63	BBB	1.75%	7.50%	0.23
Guangxi Wuzhou Communications Co Ltd	1,94	B+	4.00%	7.50%	0.53
Henan Zhongyuan Expressway Co Ltd	1,56	B	5.00%	7.50%	0.67
Huabei Expressway Co., Ltd.	2,38	BB+	2.12%	7.50%	0.28
Jiangsu Expressway Co Ltd	97,9	AAA	0.40%	7.50%	0.05
Jiangxi Ganyue Expressway Co., Ltd	3,21	A−	1.20%	7.50%	0.16
Xiandai Investment Co., Ltd	2,38	BB+	2.12%	7.50%	0.28
Shenzhen Expressway Company Limited	3,34	A−	1.20%	7.50%	0.16
Sichuan Expressway Co Ltd	4,04	A−	1.20%	7.50%	0.16
Hopewell Highway Infrastructure Ltd	2,38	BB+	2.12%	6.50%	0.33
Road King Infrastructure Limited	2,38	BB+	2.12%	6.50%	0.33
Zhejiang Expressway Co., Ltd.	2,38	BB+	2.12%	6.50%	0.33
Autrostrada Torino-Milano SPA	2,38	BB+	2.12%	8.33%	0.25
Societa Iniziative Autostradali e Servizi	4,01	A−	1.20%	8.33%	0.14
Autostrade Meridionali S.p.A.	1,67	B	5.00%	8.33%	0.60
Abertis Infraestructuras S.A.	12,21	AAA	0.40%	7.51%	0.05
Obrascon Huarte Lain SA	2,68	BBB	1.75%	7.51%	0.23
Sacyr SA	2,38	BB+	2.12%	7.51%	0.28

Source: elaborated by the authors based on information provided by Reuters [8], Damodaran [9], and Damodaran [10].