Odinsa receives the first disbursement for Pacífico II, an event that ratifies the trust in Colombia and adds dynamism to the 4G program projects

  • Odinsa receives the first disbursement for Pacífico II, an event that ratifies the trust in Colombia and adds dynamism to the 4G program projects
  • Pacífico II, a 4G program road, whose concessionaire has Odinsa as the majority shareholder, obtained the first disbursement of the structured finance under the mode of “Project Finance”.
  • The total financing amounts to approximately COP 1.3 trillion (USD 435.9 million), consisting of a credit in dollars of USD 250 million and a credit in pesos of COP 510 billion (USD 171 million).
  • Itaú obtained a syndicated loan in dollars from five known international financial institutions.
  • It is the first time that international entities, such as CDPQ Revenu Fixe (división de Caisse de dépôt et placement du Québec), Banco Santander and ING make inroads into the country by financing the 4G program projects, thus consolidating the trust from foreign investors in the country.
  • National banking also plays an important role in the project development, through the syndicated loan in pesos of COP 510 billion (USD 171 million) and the approval of USD 95 million for the closing of currency hedging – derivatives.

Medellín, October, 2017 – Pacífico II, 4G program road, whose concessionaire has Odinsa as the majority shareholder, received the first disbursement of the obtained financing of approximately COP 1.3 trillion (USD 435.9 million), consisting of USD 250 million and COP 510 billion (USD 171 million). It became the fifth 4G program project with disbursement under its respective loan agreement.

After the financial closing in September, 2016, and in compliance with the preceding conditions, Odinsa, a concession company of Grupo Argos, along with its international and national allies, managed to secure the flow of resources to maintain a good rhythm in the works of Pacífico II and comply with the concession contract. The contract has a value of COP 1.3 trillion (in pesos as of December, 2012) and it is planned for the construction of 42.5 km of new roads, 2.5 km of tunneling, 54 km of upgraded roads and 43 bridges, to connect the North of the country with Antioquia, the coffee Region, Valle del Cauca and the Colombian Pacific region.

Under the direction of Itaú, a syndicated loan worth USD 250 million was obtained from five financial institutions: Itaú, BCP, CDPQ Revenu Fixe, Banco Santander and ING. The latter three chose Pacífico II as their first project to make inroads into the infrastructure financing of Colombia. Besides, CDPQ stands out as the first Canadian pension fund to finance a 4G program project.

Banco Davivienda, main lender of the project, contributing with COP 350 billion (USD 117.3 million), and Banco de Bogotá with COP 160 billion (USD 53.6 million) have been strategic allies for the development of this road passageway. During the formalization process of the preceding conditions of senior loan, these banks injected additional resources through bridge loans worth COP 270 billion (USD 90.5 million), allowing significant progress in the execution of the construction.

Furthermore, five international banks have issued letters of credit to ensure the equity contributions and EPC contract compliance: Mizuho, BNP Paribas, Natixis, BOFA e Intesa Sanpaolo. This event reasserts the credibility in the infrastructure sector of the country. Finally, Compartimento Liquidez I from the private equity fund FCP 4G | Credicorp Capital – Sura Asset Management, managed by Unión para la Infraestructura, in conjunction with Itaú, became providers of a liquidity facility that supports the financing structure of Pacífico II.

The support from the national and international financing system is paramount to ensure the viability of the 4G program projects. For this reason, we celebrate this disbursement, which expresses trust in the infrastructure sector and in shareholders such as Odinsa, which engage in and support this project firmly,” stated the President of Odinsa, Mauricio Ossa.

For more information, please contact:

Andrea Jimeno / Director of External Communications ajimeno@odinsa.com / Cell Phone: 3134964741

Viviana Arroyave / Head of Media and Communications varroyave@odinsa.com / Cell Phone: 3176469218