Odinsa SA, a Grupo Argos SA concessions company, dedicated to the development and execution of road and airport projects both in Colombia and abroad, informs that today, based on the authorization granted by the Board of Directors on 18 December, entered into a mutual agreement as a borrower, with the subordinate company Concesión Túnel Aburrá Oriente SA, as lender, for a value of COP $ 35,516,000,000 and a term of thirteen (13) years. The purpose of the loan is to meet the liquidity needs of the company and its financial effect is to strengthen the capital structure of Odinsa S.A. As a guarantee of this loan Odinsa S.A. issued a blank promissory note with letter of instructions.
Odinsa S.A. informs that today, in accordance with the authorization given by its Board of Directors on December 18, signed a security interest contract for Pledge without holding over all the shares currently held in the Tunnel Aburrá Oriente Concession S.A. (“The Concession”), which have a book value with a cutoff as of November 30, 2020 of COP$305,564,738,059, to support in conjunction with the other shareholders of La Concesión, a syndicated bridge loan for $ 660,000,000,000, held by La Concesión also today, December 21, 2020, with Bancolombia, Banco of Bogotá, Davivienda, Banco Popular and Banco de Occidente.
Odinsa S.A. informs that today the Board of Directors unanimously through the written voting mechanism and in relation to the refinancing process of the Concession Tunnel Aburrá Oriente S.A. (“The Concession”), authorized the legal representative to:
i. The signing of a non-tenure pledge security agreement on all the shares currently held in La Concession, or those that become, to back a bridge loan syndicated for $ 660,000,000,000, granted to La Concesión by Bancolombia, Banco de Bogotá, Davivienda, Banco Popular and Banco de Occidente. The collateral must be granted in favor of the banks that finally participate, in the corresponding proportion; and,
ii. The conclusion of a mutual contract with The Concession (lender) up to $49,000,000,000, as well as to grant the required guarantees for that operation. The Aburrá Oriente Tunnel Concession has become one of the most important road corridors relevant areas of Antioquia, managing to strategically interconnect the valleys of Aburrá (Medellín) and San Nicolás (Rionegro) and reduce travel times by 60% between these subregions of great economic dynamism in Antioquia by means of 17 Km of tunnels, including 8.2 km of the Santa Elena Tunnel, the second longest in operation in Colombia, 4 viaducts, 6 bridges and road interchanges, with an investment over a billion pesos, which today are benchmarks of national engineering and bring large benefits to the department.
Fitch Ratings withdrew the rating ‘AA- (col)’ of the 2017 Bonds for COP400,000 million of Odinsa S.A. (Odinsa) due to the redemption and payment of the same
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