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.