Odinsa, the first company in Colombia with validated science-based targets to contribute to the mitigation of climate change

  • Science Based Targets©, an initiative of the four most important environmental organizations in the world that promotes the implementation of the Paris agreement, has validated the targets of Odinsa to contribute to the mitigation of climate change. 
  • ratified its commitment to contributing to the global objective of preventing an increase in the earth’s temperature by more than 1.5°C by 2030, by setting science-based targets.
  • Odinsa has set the target of reducing its scope 1 and 2 emissions (associated with the consumption of fuel and electricity) by 68% and its scope 3 emissions (generated by its value chain) by 15% by 2030.

October 7, 2021. Odinsa, the concessions company of Grupo Argos, continues to more forward at a steady pace in its sustainability strategy and its objective of contributing to the mitigation of and adaptation to climate change. The Company has set Greenhouse Gas (GHG) mitigation targets using the methodology of Science Based Targets©, which were approved by this important initiative, positioning it as the first company in Colombia to receive such validation. 

The Science Based Targets Initiative is a collaborative effort of the world’s four most important environmental organizations: The Carbon Disclosure Project (CDP), the World Resources Institute (WRI), the World Wildlife Fund (WWF) and the United Nations Global Compact (UNGC). The targets are thoroughly assessed, and they are considered “based on science” if they are aligned with what the most recent climate science considers necessary to fulfill the targets of the Paris Agreement and to continue with the efforts to prevent an increase in global temperature by more than 1.5°C by 2030.

Odinsa has set the target of reducing by 2030 its scope 1 and 2 emissions  (associated with the consumption of fuel and electricity) by 68% and its scope 3 emissions (generated by its value chain) by 15%. The Company has already been working on these targets in the framework of its sustainability strategy and the climate change strategy of Grupo Empresarial Argos, through specific actions such as replacing lighting for LED at its operations; the use of renewable energy by installing solar panels and mobile photovoltaic energy equipment for maintenance and operations; the reduction of fuel consumptions and the development of projects according to energy efficiency standards.

The validation of our targets is an important step to ensure fulfillment of the goals we have set and it ratifies our commitment to driving the transition in the sector to low-carbon infrastructure that is resilient to the effects of climate to promote sustainable mobility,” said Mauricio Ossa, CEO of Odinsa.

In line with these objectives, each year Odinsa and its concessions implement projects that contribute to the reduction of emissions, to the generation of capacity to adapt to climate change and that contribute to the protection of water sources and biodiversity in the territories. The following are some of the achievements during the latest year: 

At Odinsa we will continue to decisively work for sustainability with the conviction that, more than a purpose, it is a participative, collective and inclusive process that calls on all of us to make our best effort to build, through specific actions, a path with awareness for the future,” concluded Ossa.

For additional information contact:

Viviana Arroyave, Communications Director / varroyave@odinsa.com / 317 646 9218

Luisa Díaz, Communications Analyst / luisadiaz@dattis.com / 322 366 4488

Visit www.odinsa.com and our social media @SomosOdinsa on Twitter I Odinsa on LinkedIn

Download photographs at the following link: https://we.tl/t-DRx1e5Wpvt 

Successful bond issue by Túnel Aburrá Oriente for COP 700 billion in the Colombian capital market

  • This event represents a milestone for the country’s infrastructure and concessions sector, because it is the first bond issuance in pesos in the Colombian capital market to finance this type of infrastructure project.
  • The backing of Odinsa and its parent company Grupo Argos transmitted confidence in the transaction, which motivated the market’s appetite.
  • The active participation of investors demonstrates their confidence in the concession and in its management, as well as investor interest in the Colombian infrastructure sector.
  • Grupo Bancolombia Capital acted in the capacity of coordinator, structuring agent for the offering and lead placement agent. It was additionally one of the anchor investors for the issuance.

Medellín, September 6, 2021. Odinsa, the concessions company of Grupo Argos, reported the successful closing of the bond issuance by Concesión Túnel Aburrá Oriente, held on September 6, in the amount of COP 700 billion. This event represents a milestone in the Colombian infrastructure industry for being the first bond issue targeted at the local capital market, in pesos, through the Colombian Securities Exchange, to finance this type of infrastructure project.

For the issuance, which received a credit rating of AA+ from BRC Standard & Poor’s, Grupo Bancolombia Capital acted in the capacity of coordinator, structuring agent of the offering and lead placement agent, with the assistance of Odinsa, as the majority shareholder of the concession. Such backing relayed confidence and trust among investors throughout the transaction.

This positive response by the Colombian market demonstrates trust in the concession’s management and confirms the interest of continuing to invest in the country and its infrastructure, as a key sector for competitiveness and development,” said Mauricio Ossa, CEO of Odinsa.

The issuance was targeted at the secondary market with the participation of institutional investors, and it completes a refinancing project that began in December 2020 in the banking market. This financial optimization process will enable the concession to improve its debt structure by lengthening terms and reducing the financial cost of the project. 

“The deployment of different capabilities for the successful performance of this transaction confirms our commitment to promoting sustainable economic development to the benefit of everyone’s well-being,” said Juan Carlos Mora, CEO of Grupo Bancolombia. “This purpose additionally led us to make a substantial effort to participate as investors in an operation that improves the conditions of this project, which is a benchmark for the country’s competitiveness and economic growth,” he added.

The successful issuance and placement process reflects support for what has become one of the most important road corridors of Antioquia, with traffic of over 15 million vehicles in the last 2 years. This iconic project strategically interconnects the valleys of Aburrá (Medellín) and San Nicolás (Rionegro), and reduces travel times between these two highly dynamic economic subregions in Antioquia by 55%, by means of tunnels, viaducts and highway exchanges that have become a benchmark for local engineering and which bring major benefits to the department.

“Being the first concession in Colombia to make an issuance with these feature motivates and challenges us to continue managing the project in a comprehensive manner, under the highest sustainability standards, promoting road safety, strengthening our services and implementing technologies that offer an excellent experience to the users who drive through one of the most important regions of Colombia,” said Carlos Preciado, CEO (d) of Concesión Túnel Aburrá Oriente.

Through projects of this type the Concession optimizes its current investments, generating resources that enable making new investments of high social, environmental and economic value, to continue developing connectivity for users, through sustainable infrastructure and practices that contribute to the competitiveness of Antioquia and the country.

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The following are the details of the bond issue: [Please validate the applicable data]

(We may award 2 series, so this table should provide details on both series).

Odinsa, the Grupo Argos Concessions Company, and Macquarie Asset Management establish road platform in Colombia and the region

  • Macquarie Asset Management is a leading global asset manager with more than US 450,000 million of assets under management, which includes USD 107,000 million of equity invested in infrastructure assets around the world
  • This platform has the potential of developing over COP 4.5 trillion in new investments in the region.
  • By creating this platform through its concessions company, Grupo Argos continues to consolidate its position as a major player in the infrastructure sector in Colombia and the region.
  • This strategic partnership is a clear demonstration of confidence in the country by Odinsa and the world’s largest infrastructure investment fund.

Odinsa, the Grupo Argos concessions company, and Macquarie Infrastructure Partners V (MIP V), an Americas-focused, unlisted infrastructure fund managed by Macquarie Asset Management (MAM), one of the world’s largest infrastructure managers[1], have signed a strategic alliance for the creation of an investment platform that will manage Odinsa’s current road assets in Colombia: Pacífico 2, Túnel Aburrá Oriente, Autopistas del Café and Malla Vial del Meta, with a consolidated valuation that amounts to COP

COP 4.3 trillion.

This new roads platform will become one of the largest in the region and will continue to explore additional opportunities to create value through the development of new projects that could require funding of close to COP 4.5 trillion, a highly relevant investment for road infrastructure in Colombia and the region.

The platform will also manage the initiatives that Odinsa is currently leading in the Colombian roads sector, including: Perimetral de la Sabana and Conexión Centro, as well as the possible expansion of the Concesión Túnel Aburrá Oriente, which if developed, will receive substantial financial backing and technical support for their development.

The platform will be created through the establishment of a private capital fund, whose investors will be Odinsa S.A. and MIP V (each with a 50 % share). In addition to capital, MAM will contribute its broad global expertise in the road industry to continue strengthening the results of current and future assets. MAM, jointly with Odinsa, will promote the platform’s growth which focuses on the development of transformational initiatives that foster the competitiveness of Colombia and the region.

“With this strategic alliance with Macquarie Asset Management, we ratify our commitment to the country and we strengthen ourselves to continue consolidating and expanding our presence in Colombia and the region, with sustainable infrastructure projects that boost competitiveness and development.”   Mauricio Ossa CEO of Odinsa

Within the framework of the alliance, which was approved by the Board of Directors of Odinsa, an agreement was reached regarding the sale and contribution of the equity interests held by Odinsa in the Pacífico 2, Túnel Aburrá Oriente, Autopistas del Café and Malla Vial del Meta road concessions, as well as its private initiatives. These participations will be consolidated in the Fondo de Capital Privado, subject to the fulfillment of a series of precedent conditions for the closing and completion of this important transaction.

About Macquarie Asset Management

Macquarie Asset Management (MAM) provides specialist investment solutions to clients across a range of capabilities including infrastructure & renewables, real estate, agriculture, transportation finance, private credit, equities, fixed income, and multi-asset solutions.

As of March 31, 2021, the MAM business had more than $US450 billion of assets under management. MAM has over 1,900 staff operating across 20 markets in Australia, the Americas, Europe, and Asia.

MAM, through its affiliates, has been managing assets for institutional and retail investors since 1980 in Australia and in the United States, retail investors recognize the Delaware Funds® by Macquarie family of funds as one of the longest-standing mutual fund families, with more than 80 years in existence.

Press room: https://www.grupoargos.com/es-co/media/noticias:

Iván Trujillo Institutional Relations and Communications Manager at Grupo Argos E-mail: itrujillo@grupoargos.com
Cell phone: +57 (313) 829-1863
Viviana Arroyave Communications Director at Odinsa
E-mail: varroyave@odinsa.com.co Cell phone: +57 (311) 384-5611  
Lee Lubarsky Macquarie Group Media Relations E-mail: Lee.Lubarsky@macquarie.com  +1 (347) 302-3000 

This press release does not constitute an advertisement or an offer to sell any security or the solicitation of any offer to buy an interest in MIP V or any existing or future fund or investment vehicle managed or advised by MAM and/or its affiliates or any other security. None of the entities referred to in this press release is an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity

Odinsa achieves successful refinancing of the Pacífico 2 project with international entities, this ratify their confidence in Colombia

  • Concesión La Pintada, which is in charge of the 4G Pacífico 2 project, signed a credit agreement with four major international financial institutions: Itaú, SMBC (Sumitomo Mitsui Banking Corporation), BNP Paribas and CDPQ to refinance its current debt.  
  • The refinancing, which amounts to US$260 million, will improve the project’s financing conditions and costs.
  • This operation is good news for the sector and the country, as it once again attracts the attention of international investors.
  • The support of Odinsa, its holding company Grupo Argos, and John Laing, shareholders of the concession, gives the transaction a trustworthy seal of approval that motivates the interest of the international banking market.

Medellín, Colombia, July 21th, 2021. Odinsa, a Grupo Argos concession company, reported today a new milestone in its 4G Conexión Pacífico 2 project, in Antioquia, which continues to advance in its purpose of contributing to the connectivity and competitiveness of the country. A new credit agreement was signed in order to refinance its debt in dollars. Four important international entities participated in the transaction: Itaú, SMBC, BNP Paribas and CDPQ Revenu Fixe Inc. (a wholly-owned subsidiary division of Caisse de dépôt et placement du Québec), for a total of US$260 million, which will support efficiencies and improve the project’s leverage and cost structure.

This positive market response shows the confidence of large international investors in Pacífico 2’s management and their interest in continuing to invest in Colombia and its infrastructure, as a key sector for reactivation, competitiveness, and development,” said Mauricio Ossa, president of Odinsa, the majority shareholder of Pacífico 2.

Itaú is pleased to accompany a great partner such as Odinsa in the refinancing of this important project, which has been handled in the best possible way. The works of the project are fundamental for the progress of the country, especially for the companies and the people of Antioquia, the Eje Cafetero and Valle del Cauca. This high-impact project contributes to the joint objective of leveraging and accelerating the country’s productive reactivation,” said Jorge Alberto Villa, Vice President of Wholesale Banking at Itaú Colombia.

At BNP Paribas we remain committed to Colombia’s growth. We consider that infrastructure projects such as Pacífico 2, in charge of first-class sponsors demonstrate that works can be done under the established time, cost and technical conditions.  These projects are vital for the development and competitiveness of the country, showing the capacity of local entrepreneurs to develop projects of great impact and scope“, said Jorge Valderrama, Country Head of BNP Paribas in Colombia.

“Pacífico 2 is a transformative project for Colombia, supporting the efficient movement of people and goods from production centres to ports and increased domestic economic activity. As a long‑term investor, we are happy to contribute again, alongside international financial partners, to the financing of key infrastructure that will have constructive impacts for trade and mobility for generations to come,” said Marc Cormier, Executive Vice-President and Head of Fixed Income at CDPQ.

The project responsible for Concesión La Pintada reports 99.8% of work completed, positioning it among the first fourth-generation (4G) roadway concessions that will finish its construction stage in the third quarter of 2021. It includes 96.5 kilometers in the Primavera-La Pintada and La Pintada-Bolombolo sections, which will facilitate the strategic connection between northern departments of the country, Antioquia, the Eje Cafetero, and the Pacific Coast.

The project’s significant advancement of work, and the positive results in terms of mobility, operations, and social and environmental management, combined with the support of shareholders, Odinsa, its holding company Grupo Argos, and John Laing, provide a seal of confidence in the banking market, allowing a positive response and the achievement of positive conditions for the success of the process.

In the coming weeks, subject to the fulfilment of contractual conditions, funds will be disbursed and used for the payment of debt, shareholder dividends, and project operations.

Finally, it should be recalled that Pacífico 2 was the fifth project of the 4G program to receive its disbursement for the financial close in 2017, in which international entities for the financing of 4G projects in Colombia, such as Itaú and CDPQ, reiterate their confidence in the project by also participating in the refinancing today.

For additional information contact:

Viviana Arroyave, Communications Director / varroyave@odinsa.com / 3176469218.

Visit www.odinsa.com and our social networks @SomosOdinsa on Twitter and Odinsa on LinkedIn.