Target Information

COFIDES has once again partnered with Grupo Ortiz in the operation and maintenance of the "Transversal del Sisga" road in Colombia. Through the Foreign Investment Fund (FIEX) and its own resources, COFIDES will increase its stake in Concesión Transversal del Sisga from 24.9% to 49.9%, along with subordinated debt amounting to €19.5 million. This financing enables COFIDES and Grupo Ortiz to acquire a 50% share currently held by a local partner.

Industry Overview in Colombia

The Transversal del Sisga concession is part of Colombia's fourth generation of road concessions, known as "4G." This operational 137-kilometer corridor serves as a vital connection in the central region of the country, benefiting over 5.2 million residents across the departments of Cundinamarca, Boyacá, and Casanare. The development of such infrastructure is crucial as it fosters regional connectivity and enhances economic opportunities.

Colombia's infrastructure sector has been a focal point for investment in recent years, driven by government initiatives aimed at improving road networks, energy distribution, and public services. The "4G" program, specifically, is designed to modernize the nation's transport infrastructure, aiming for a significant reduction in travel times and costs, thereby bolstering trade and economic growth.

The project aligns with Colombia's broader strategic goals to attract foreign direct investment while simultaneously addressing domestic infrastructure deficits. Collaborations like these enhance the sector's attractiveness and are pivotal for sustainable economic progress.

Additionally, this undertaking supports the Sustainable Development Goal 8, which focuses on decent work and economic growth, having already created over 8,700 direct jobs in the region, further improving the local economy.

Rationale Behind the Deal

The rationale for COFIDES’s increased investment in the Transversal del Sisga project stems from its previous involvement and the successful operational performance of the concession. Continued collaboration with Grupo Ortiz highlights COFIDES's commitment to reinforcing infrastructure development in Colombia, especially given the Spanish company's extensive experience in the region.

This deal not only solidifies COFIDES's stake in the project but also underlines its strategy to support sustainable and innovative infrastructure solutions that can foster economic growth and improve the quality of life for the inhabitants.

Information About the Investor

COFIDES, or the State-owned Company for Development Financing (Spanish: Companía Española de Financiación del Desarrollo), is a Spanish governmental entity that manages state financial funds and resources from other institutions. Its objectives include supporting the internationalization of the Spanish economy, attracting foreign investments to strategic sectors in Spain, and contributing to the development of the economies where it invests.

In addition to state ownership, COFIDES’s stakeholders include prominent banks such as Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell, and CAF-Banco de Desarrollo de América Latina, indicating strong institutional backing and a commitment to fostering sustainable economic initiatives.

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The partnership between COFIDES and Grupo Ortiz in this significant infrastructure project reflects a strategic investment that is likely to yield positive economic returns over time. The ongoing support for regional infrastructure development is critical for safely driving economic growth, reducing unemployment, and enhancing connectivity within Colombia.

Given the established operational success of the Transversal del Sisga concession and the expected benefits from improved road infrastructure, this investment can be considered both timely and necessary. The alignment with the Sustainable Development Goals also enhances its viability from a social responsibility perspective.

Moreover, as Grupo Ortiz continues to demonstrate significant expertise in managing such projects, COFIDES's decision to expand its involvement suggests confidence in the long-term sustainability and impact of the concession. This strategic move represents a robust commitment to enhancing Colombia’s infrastructure landscape.

In conclusion, the investment in the Transversal del Sisga project not only strengthens COFIDES’s portfolio but also reinforces its role as a major player in promoting sustainable infrastructure development, making this a commendable investment choice.

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