It is the largest social bond in Latin America linked to an infrastructure project


Sacyr Concesiones has completed the refinancing of the 4G road project between Pamplona and Cúcuta, a highway in Colombia, for 642 million dollars (586 million euros), which has been rated ‘Baa3’ and ‘BB’ by rating agencies Moody’s and Fitch, respectively.

The financing is distributed in a social bond of 400 million dollars (365 million euros), a multi-tranche bank loan of 165 million dollars (150 million euros) and another bank tranche, in Colombian pesos, for a value of 77 million dollars (70 million euros).

In addition to the ‘senior’ financing, liquidity has been released in the project that replaces the reserve accounts with letters of credit with recourse to the project, for a value of 65 million dollars (60 million euros), as reported by the company.

This is the third social bond issued by Sacyr in Colombia and the largest in Latin America linked to an infrastructure project. In this sense, throughout the different stages of the project, more than 5,000 direct jobs have been generated.

JP Morgan and Santander have acted as structurers of the operation and the Instituto de Crédito Oficial, MUFG Bank, MetLife, Allianz Life Insurance, IDB Invest, BlackRock, FDN and Banco Latinoamericano de Comercio Exterior have also participated. The issue matures in 18 years, that is, in February 2041.

The social bond and loan categorization is preceded by an evaluation and analysis process by Moody’s ESG Solutions, which confirms that the bond and loans are aligned with the basic components of the ‘Social Bond Principles 2021’, of the International Capital Market Association (ICMA) and the ‘Social Loan Principles 2021’ of the Loan Syndications and Trading Association (LSTA).

The concession company Unión Vial Río Pamplonita, 100% owned by Sacyr Concesiones, is in charge of the final studies and designs, financing, environmental and social management, construction, improvement, rehabilitation, operation, maintenance and reversal of the Pamplona-Cúcuta road corridor. , in the department of Norte de Santander.

The length of the project is 62.2 kilometers between origin and destination, with 50.2 kilometers of dual carriageway and single carriageway and 72.2 kilometers of existing road rehabilitated.

The project will improve the country’s road connectivity, specifically at the border crossing to Venezuela, thus promoting the socio-economic development of northeastern Colombia, while reducing travel times and transportation costs, directly impacting more than 782,000 people in the region.