Odinsa, a concessions company of Grupo Argos, acquires the controlling interest of the Túnel Aburrá Oriente Concession

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  • Odinsa announced the signing of the agreement to acquire 53% of the shareholding in the Conexión Vial Aburrá Oriente – Túnel de Oriente project.
  • Through this transaction, the company ratifies its commitment to the development of the country and continues to strengthen its presence in Antioquia, where it is successfully moving forward in the construction of the fourth-generation road, Conexión Pacífico 2.
  • Once the transaction is closed, Odinsa will become the majority shareholder of the concession that connects Valle de Aburrá to Valle de San Nicolás.

Medellín, October 8, 2019. Odinsa, a concession company of Grupo Argos, ratifies its intention to contribute to the competitiveness of the country through a new investment that consolidates its presence in Antioquia and strengthens its portfolio in Colombia. The company announced the signing of an agreement to acquire a 53% equity interest in the Túnel Aburrá Oriente Concession, to become the majority partner thereof.

“The Conexión Vial Aburrá Oriente – Túnel de Oriente that we are highlighting as one of the main engineering works in Colombia, is a relevant asset that will enable us to continue generating value and making available to Antioquia and the country all our knowledge and experience in road concessions” said Mauricio Ossa, CEO of Odinsa. 

This mega-project has become one of the most relevant corridors in Antioquia, positioning itself as a benchmark for Colombian infrastructure. The project is made up of three roads that add up to more than 60 kilometers and connect the Valle de Aburrá to eastern Antioquia through tunnels, viaducts and highway interchanges, also constituting the main access road to the José María Córdova International Airport. Additionally, the Túnel Santa Elena, the most iconic work of the concession as the longest tunnel in operation in Latin America, substantially reduced travel time to and from Medellín. 

“We are proud to continue contributing to the construction of a competitive country through investments in transformative works like this one, which in addition to connecting the Valle de Aburrá to Valle San Nicolás, is necessary to continue promoting the development and competitiveness of Antioquia and generating wellbeing for its inhabitants. Our long term purpose is to invest in the execution of a modern, sustainable and competitive infrastructure for the country. Through this announcement Grupo Argos totals COP 2 billion of investment in infrastructure in Antioquia,” said Jorge Mario Velasquez, CEO of Grupo Argos and Chairman of the Board of Directors of Odinsa.

This acquisition, which is valued at approximately COP 335,000 million, will be financed by Odinsa through the relocation of the capital it has invested in other assets and in other geographic locations, and it is not considering increasing the structural debt to finance the acquisition. The payment will be made in two parts: 50% upon closing the transaction and the remaining 50% within the following 18 months.

Once the established conditions are met and the closing is carried out, this asset will be added to the 6 road concessions that Odinsa, the concessions company of Grupo Argos, currently has in 3 countries in the region and through which, in the first half of the year, more than 14 million vehicles circulated, among which Autopistas del Café and Conexión Pacífico 2 stood out in Colombia.

About Odinsa

The concessions company of Grupo Argos currently has a strategic portfolio that strengthens its position in the sector and a management based on the framework of sustainability and good corporate governance, as engines of responsible and positive growth for the country and for the company. Its road and airport concessions include:

  • Conexión Pacífico 2, Colombia: In the first half of the year, this project, located in Antioquia, inaugurated its second section or functional unit (of 5) and to date, reports a work progress of more than 76.45%. See works completion video
  • Autopistas del Café, Colombia: The concession closed the first half of the year with a traffic of more than 5 million vehicles and 3,600 services provided to its users.
  • El Dorado Airport, Colombia: in the first half of the year, over 16 million passengers moved through this airport; in addition, El Dorado has positioned itself as a green airport in the region, having received several awards, including the international Outstanding Sustainability Program award and the Carbon Footprint accreditation. See more
  • Mariscal Sucre Airport, Ecuador: positioned by Skytrax as the Best Airport in South America, completing 6 years of operations in 2019 during which time it has contributed to the country’s connectivity. See more

For additional information about Odinsa, contact:

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

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

Odinsa Airports stand out for reducing the carbon footprint: Mariscal Sucre Airport was declared carbon neutral, and El Dorado Airport advanced to the reduction level

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  • Grupo Argos’s concession company, Odinsa, ratified its commitment to sustainability and generating shared value through the implementation of climate change mitigation initiatives at its concessions.
  • Mariscal Sucre became the first international airport to have reached carbon footprint neutrality in Latin America.
  • El Dorado was certified at level 2 – Reduction by the Airport Carbon Accreditation of the ACI-LAC because it reduced emissions intensity by 5% over 2017, and by 25% compared to the previous three years’ average.

Medellín, September 9, 2019. Odinsa, Grupo Argos’s concession company, continues to materialize its commitment to sustainability through specific actions and programs that generate shared value for the company, the environment and society. This includes its decisive aim to reduce the carbon footprint, with its airports attaining outstanding results.

Mariscal Sucre Airport in Quito was declared carbon neutral in the Airport Carbon Accreditation Program (ACA) established by the Airports International Council and with technical approval from the United Nations, the International Civil Aviation Organization, the World Bank, and the US Federal Aviation Administration. Mariscal Sucre became the first international airport to have reached carbon footprint neutrality in Latin America.

Initiatives aimed at reaching this important goal include specific actions to reduce greenhouse gas emissions, as well as fuel savings and energy efficiency actions such as replacing lamps for LED bulbs, and capturing over 400 tons of CO2 thanks to the 4,596 trees planted in reforestation activities at the Caraburo plateau reserve area, among others. In addition, the airport offsets its direct emissions through the purchase of certified carbon bonds from sustainable projects like the MANOA REDD+, which consists of the conservation of a 74,000-hectare forest located in the state of Rondonia, Brazil, whose biodiversity is threatened by deforestation and lumber theft.

“At Odinsa we have the clear conviction that sustainability requires concrete actions that generate positive impacts, which is why we design, adapt, implement and share industry best practices at our concessions, which allow us to generate shared value for our stakeholders as well as for the company,” stated Mauricio Ossa, CEO of Odinsa.

El Dorado’s air terminal received level 2 – Reduction certification, in the framework of this same program by the Airport Carbon Accreditation of the ACI-LAC, because it reduced emissions intensity by 5% over 2017, and by 25% compared to the previous three years’ average.

This reduction was possible thanks to the implementation of strategies stipulated in the airport’s carbon management plan, which includes energy savings based on improvements to the air conditioning, ventilation and lighting systems, as well as service vehicle fleet renovation, in addition to the execution of offset programs involving planting and maintaining trees at an ecosystem of the dry tropical forest in the Colombian Andean region, and its participation in the BanCO2 initiative.

Other noteworthy aspects of the plan include the short-term launch of the largest air terminal solar panel project in Latin America, developed thanks to a partnership between Odinsa, Opain and Celsia, which includes 10,369 panels that will generate around 12% of the air terminal’s energy, which is equivalent to the energy consumption of +1500 homes. This project will also prevent the emission of

1,375 tons of CO2.

Finally, Odinsa will continue to deploy its shared-value generation proposal and to responsibly manage its concessions, in line with the best practices of its parent company, Grupo Argos, thereby continuing to support competitiveness and development in the countries where it operates through high-impacting, carefully developed projects that generate progress and connectivity.

More about managing energy and carbon emissions and the Airport Carbon Accreditation:

ENERGY AND EMISSIONS MANAGEMENT AT ODINSAABOUT AIRPORT CARBON ACCREDITATION LEVELS:
Structuring
We identify energy efficiency opportunities and create strategies to prevent and mitigate emissions during the construction and operation of infrastructure projects, which also adapt to climate change.
Quantification
We inventory greenhouse gas emissions in our projects, pinpointing sources of emissions and their volumes, which allows us to identify strategies to reduce and optimize energy consumption.
Reduction and optimization
We look for energy efficiency opportunities and implement operational improvements to reduce impacts and generate savings in projects. We also work with roads and airports stakeholders to engage them in efforts to manage mobility impacts.
Offsetting
We implement offset plans through initiatives that protect strategic ecosystems.

Odinsa strengthens the trust of the market and its investors with an AA- Stable Outlook rating

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  • Fitch Ratings, one of the three main risk rating agencies in the world, confirmed Odinsa’s Ordinary Bonds rating at AA-(col), with a Stable Outlook.
  • This fact continues to consolidate Grupo Argos’s concession company as a solid investment vehicle, since it is awarded to organizations that are highly likely to fulfill their obligations.

Medellín, July 9, 2019 – For the third year in a row, Fitch Ratings has awarded Odinsa, Grupo Argos’s concessions company, an AA-(Col) rating for its Ordinary Bonds totaling COP 400,000 million, and reaffirmed its Stable Outlook. 

“This ratification highlights the trust in the strategic road we have been following with discipline, and it becomes a seal of trust for our investors; in addition to an opportunity to continue strengthening our shares in Colombia’s securities market”, affirmed Mauricio Ossa, CEO of Odinsa.

The agency pointed to five key factors it considered in ratifying the rating: the presence of Grupo Argos as controlling shareholder, its balanced portfolio of concessions, its growing prospective cash flow, its high leverage and ample experience in the infrastructure sector.

According to the Fitch Ratings report, the ratings considered Odinsa’s connection with the credit profile of its parent company Grupo Argos (AAA(col)/Stable), which is based on the existence of strong operational and strategic links. Similarly, it included Odinsa’s experience in developing infrastructure projects in and out of Colombia, the gradual strengthening of the cash received from various concessions in which it participates, and its focus on long-term concessions with predictable income.

The AA- rating awarded to Odinsa is in the top category of debt issues, which feature a high level of certainty about their capacity to pay in the short term. In other words, these issues are very attractive for investors, who see Fitch’s opinion as an important reference for decision-making.

More about the key factors highlighted by Fitch Ratings:

  • The agency issued a positive assessment on the presence of Grupo Argos as the controlling shareholder (99.8%), which aligns Odinsa’s guidelines and policies with those of the Group, and which also upgraded its rating to AAA(Col), thus consolidating its support for Odinsa.
  • Balanced concessions portfolio: It involves the operation of long-term concessions with predictable income, which helps offset, to a certain extent, the volatility of the revenue and the risk profile associated with construction. 

In this regard, it highlights the strong performance displayed by Odinsa’s concessions in the first quarter of 2019, from which the company received revenue totaling COP 199,240 million and EBITDA of COP 141,802 million.

  • Experience: the accumulation of ample experience in managing, building and operating road and airport infrastructure projects With over 25 years in the sector, Odinsa has participated in the consolidation of strategic projects, and at this time, it holds 4 concessions in Colombia, 1 in Ecuador, 1 in Aruba and 2 in Dominican Republic.

Its main projects include:

  • El Dorado Airport in Colombia: in the first half of the year, this airport moved over 16 million passengers, reporting an increase of 18% in passengers paying the airport fee compared to the previous year. In addition, El Dorado has positioned itself as a green airport in the region, having received several awards, including the international Outstanding Sustainability Program award and the Carbon Footprint accreditation. See more
  • Conexión Pacífico 2 in Colombia: in the second half of the year it inaugurated the second functional unit (out of 5 roads), and to date it reports over 70% works completion. See works completion video
    • Mariscal Sucre Airport in Ecuador: positioned by Skytrax as the Best Airport in South America, completing 6 years of operations in 2019 during which time it has contributed to the country’s connectivity. See more
  • High leverage: the materialization of the many strategies undertaken by the company to strengthen its capital structure and cash flow generation could result in a ratings upgrade.

For additional information contact:

Viviana Arroyave, Director of Communications / varroyave@odinsa.com / +57 3176469218

Odinsa highlighted management of Autopistas del Café in the first half of 2019

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  • The concession closed the first half of the year with a positive balance and traffic of over 5 million vehicles.
  • At this point in 2019, over 100,000 people have visited its user assistance centers (Tambos) and just over 3,600 travelers used their assistance services.
  • Autopistas del Café also reported progress in Addendum 20 with the start of works and completion of some designs.

Medellín, July 22, 2019. Grupo Argos’s concession company Odinsa highlighted the performance of Autopistas del Café’s operations and indicated that thanks to its user-focused efforts, it attained a positive balance in the first half of 2019, contributing to regional connectivity and strengthening the Coffee Belt as one of the main road networks in Colombia.

With regard to infrastructure, Odinsa indicated that the concession made progress in the materialization of works stipulated in Addendum 20, which was signed in 2018, emphasizing that some of the studies and designs described therein have been completed. These include the nine pedestrian bridges in Playa Rica and Guacarí in Risaralda; stabilizing the embankment at K24+380 in Valle del Cauca; and the intersections in El Caimo district, La Tebaida and Filandia municipality in Quindío, standing at 50% works completion. Additionally, installation of the El Rosario Pedestrian Bridge located in the Chinchiná – La Manuela Highway in Manizales, which will be operation in the third quarter of the year.

Moreover, other services intended to provide users with a good experience include the Tambos, or user assistance centers, which have become tourist landmarks, because they are spaces where visitors can enjoy beautiful landscapes and the coffee culture, as well as free services such as bathrooms, telephones, parking, Internet and cafeterias. In the first half of the year, over 100,000 visitors enjoyed these four Tambos: El Edén in Armenia; El Privilegio in Santa Rosa de Cabal; Jardín Filandia and La Manuela in Manizales. 

In addition, the concession renewed its mobile application to provide tourists and locals alike a more personalized experience: Autopistas del Café. With the app, users can search for road conditions in real time and get information about tourist attractions, request assistance if needed, and get discounts at restaurants located along the highway.

 “We are excited to see how Autopistas del Café continues to support regional connectivity with its timely services, the execution of top-quality projects, contributions to social development, and generation of positive experiences for its users,” said Mauricio Ossa, CEO of Odinsa. 

With regard to its social and environmental management, which constitutes a fundamental pillar for Autopistas del Café, and in line with Odinsa policies, in the first half of the year the concession engaged in various activities, including trainings and workshops focused on road safety for over 1000 children from 22 schools; reforestation of 25 hectares with 27,500 trees planted to protect the source of the Quindío River; and the construction of 250 individual septic systems in Manizales, Pereira, Santa Rosa, Circasia, Salento and Filandia.

Furthermore, in order to promote road safety and facilitate user mobility, the concession, together with the Highway Police, provided 1500 sessions for training, support and preventive highway plans to raise awareness among users about this important topic.

“In the second half of the year we will continue working together with our shareholder Odinsa to promote regional connectivity, encouraging safe mobility, strengthening our services and implementing technological improvements that provide an excellent experience to the users that travel through one of Colombia’s most representative regions,” said Autopistas del Café’s Manager, Mauricio Vega.

For more information contact:

Viviana Arroyave, Director of Communications I +57 3176469218 I varroyave@odinsa.com

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