COFIDES has granted a total of €39 million to Grupo Ortiz for the construction and operation of two highways under Colombia’s 5G road infrastructure programme, through a project finance structure.
Specifically, COFIDES will participate in Autopista Magdalena Medio S.A.S., the company responsible for the operation and maintenance of the road infrastructure project “Troncal del Magdalena I”, with a maximum amount of €21.05 million, through the acquisition of 10% of the share capital and debt.
In addition, COFIDES will acquire a 10% stake in the share capital and subordinated debt of Autopista del Río Grande, the company in charge of the construction and maintenance of the “Troncal de la Magdalena II” project, with a maximum investment of €18.3 million.
In both projects, COFIDES’ financing is provided through the Foreign Investment Fund (FIEX) and COFIDES’ own resources.
Improving connectivity and creating 40,000 jobs
The project will pass through seven municipalities and will have a significant impact on Colombia’s infrastructure. It will improve connectivity between the Caribbean coast and the country’s interior, reduce travel time by two hours, and generate 40,000 jobs. In addition, it will boost logistics competitiveness and foster regional economic development.
The Magdalena Trunk Roads are two projects in Colombia that form part of the country’s 5G Road Infrastructure Programme, aimed at modernising and expanding the existing corridor between Puerto Salgar (Cundinamarca) and Barrancabermeja (Santander) (Trunk I), and Sabana de Torres (Santander) and Curumaní (Cesar) (Trunk II). With a total length of 532 km, the projects include the construction of dual carriageways, bypasses and upgrades to existing roads, enabling road connectivity between the centre of the country and Caribbean ports and generating a major impact on competitiveness and regional development.
This is the fifth transaction in which COFIDES and Grupo Ortiz have collaborated, following support for the company in four concessions in Colombia (Conexión Norte, Transversal del Sisga, Energía de Colombia and Hospital de Bosa).
Miguel Ángel Ladero, COFIDES’ Corporate Director of Investments, stated that “COFIDES’ participation in the Magdalena Trunk Roads will help boost connectivity and improve the competitiveness of the area, strengthening Grupo Ortiz’s position in Colombia and promoting efficient and sustainable infrastructure.”
Javier de la Mata, CEO of Grupo Ortiz, highlighted that “this new support from COFIDES for Grupo Ortiz is highly significant, as it further reinforces its concession projects in Colombia. The Magdalena Trunk Roads are a milestone due to their scale and complexity, as well as their comprehensive sustainability vision. Their development consolidates a strategic corridor for the country.”
About Grupo Ortiz
Grupo Ortiz is a global infrastructure and energy concessionaire with 65 years of experience, diversified across four business areas: Concessions, Energy, Infrastructure and Real Estate. Grupo Ortiz is a benchmark in international infrastructure and energy concessions, a leading specialist in renewable photovoltaic EPC projects, and an expert in sustainable infrastructure. The group has a strong presence in Spain, Colombia, the United States, Peru, Mexico and Panama.
About COFIDES
COFIDES is a Spanish state-owned company that manages government financial funds, as well as its own resources and those of third-party institutions, with different objectives: supporting the internationalisation of the Spanish economy, attracting foreign investment into strategic sectors in Spain, promoting impact economy initiatives in Spain, and contributing to the development of the countries in which it invests. In addition to the Spanish State, which holds a majority stake, COFIDES’ shareholders include Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell and CAF – Development Bank of Latin America
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