Brazil airport auction tests investor confidence in Bolsonaro

Spain's Aena snapped up six airports in Brazil on Friday, in an auction seen as the first major test of foreign investor confidence in President Jair Bolsonaro's market-friendly agenda.

The initial sale of concessions to 12 airports generated 2.3 billion reais ($620 million) -- more than 10 times the minimum fee required -- which infrastructure minister Tarcisio Freitas hailed as "a great demonstration of confidence in the country."

Rights to operate the airports for 30 years -- which were sold in three separate lots -- were also won by Flughafen Zurich of Switzerland and a Brazilian consortium, Aeroeste. A total of nine groups competed.

The administrators must invest a total of 3.5 billion reais during the term of the concession.

Brazil is to complete the sale of concessions to 42 airports between 2020 and 2022, including Santos Dumont in Rio de Janeiro and Congonhas in Sao Paulo. The airports auctioned Friday represent 9.5 percent of the domestic market.

Six airports in northeastern Brazil were bought by Aena, two in the center-west went to Zurich, and four in the southeast to Aeroeste.