Financial close for USD642 million Road PPP project in Colombia
7 August 2023
Sacyr Concesiones has announced that it closed the financing of the 4G road project connecting Pamplona and Cucuta (Colombia) for US$642 million.
Moody's ESG Solutions granted a social qualification to this financing, which comprises a US$400 million social bond, a US$165 million multi-trench bank loan, and an additional bank loan denominated in Colombian pesos, equivalent to US$77 million. This transaction creates liquidity for the project, which replaces reserve accounts with letters of credit allocated to the project in the amount of US$65 million. JP Morgan and Santander took on the role of structures for the operation. The financing involved several banking entities, namely Santander, JP Morgan Chase Bank, N.A., Instituto de Crédito Oficial E.P.E., MUFG Bank, Ltd., N.A, MetLife, Allianz Life Insurance, IDB Invest, BlackRock, FDN, and Banco Latinoamericano de Comercio Exterior, S.A.
The project involves an extension of 62.2 km in total (to and from) with the following components:
- Newly constructed road: 50.2 km, comprising both single and divided highway sections.
- Rehabilitation: 72.2 km of existing road, specifically between Pamplona and Betania, Los Patios.
The Pamplona-Cucuta project aims to enhance road connectivity in Colombia, particularly in the border region with Venezuela, which will contribute to the social and economic development of the northeastern part of the country. As a result, travel times and transport costs will be significantly reduced, directly benefiting more than 782,000 local residents. Social and environmental programs have been initiated in conjunction with the project, including training sessions, tree planting, support for entrepreneurial ventures, health brigades, and other community-focused actions.
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