IDB Invest Promotes Road Infrastructure in Northeast Colombia
• The project will improve connectivity in the Northeast of Colombia, benefiting more than 782,000 people and will promote regional integration.
• It’s the second time that IDB Invest acts as an anchor investor in a social financing of infrastructure in Colombia, facilitating the mobilization of institutional investors.
IDB Invest supported an investment for the Pamplona-Cúcuta highway concession project in Colombia, acting as an anchor investor by subscribing $126 million equivalent in UVRs (real value units - inflation-indexed Colombian pesos) in a social bond promoted by Sacyr Concesiones in Colombia, and issued by the Río Pamplonita Road Union Trust. The project adds a total financing of $643 million structured through multiple bond tranches and bank loans in dollars and Colombian pesos.
IDB Invest has played a key role in this transaction by supporting an innovative long-term solution in local currency, to refinance part of the project through international capital markets and mobilize institutional investors that prioritize social impact investments. Thus, IDB Invest fulfils one of its priority objectives of connecting international impact investors with development projects in the region.
The project is the most important road infrastructure in Northeast Colombia and will improve the integration of the Cúcuta region with the rest of Colombia. In addition, it will reduce travel times and transportation costs for more than 782,000 people through the nine communities under direct influence: Pamplona, Pamplonita, El Diamante, Chinacota, Bochalema, La Donjuana, Los Vados, Los Patios and Cúcuta.
Moody's ESG Solutions gave the bond issue the "social" label based on the independent verification of the methodological framework, given the positive impact that the project generates in the communities, through the funds obtained in the issuance and its alignment with the principles of the International Capital Market Association (ICMA). Likewise, it has received a BB+ credit rating by Fitch, in line with the sovereign credit risk.
In addition, IDB Invest and Sacyr have worked together to ensure that this financing deal has a compliance and governance system in line with the best practices in the sector.
This funding is expected to contribute to four United Nations Sustainable Development Goals (SDGs): No Poverty (SDG 1); decent work and economic growth (SDG 8); Industry, innovation and infrastructure (SDG 9); and Sustainable cities and communities (SDG 11).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $15.3 billion in asset management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
On Union Road Río Pamplonita
Unión Vial Río Pamplonita (“UVRP") is the concessionaire responsible for the Concession Agreement to develop the Pamplona-Cúcuta highway project. UVRP is owned by Sacyr Concesiones Colombia S.A.S. and Sacyr Concesiones Participadas I S.L. For its part, the Unión Vial Río Trust Pamplonita is a trust organized under the laws of Colombia in accordance with the requirements of the concession contract managed by Fiduciaria de Occidente, an entity supervised by the Financial Superintendence of Colombia.