Sacyr has carried out with great success of demand the first issuance of social bonds in Latin America linked to an infrastructure project, the Puerta de Hierro-Cruz del Viso roadway (Colombia).
This bond issuance, valued at 209 million dollars (174 million euros), is aligned with Sacyr’s 2021-2025 Strategic Plan, which anchors sustainability as the cornerstone for the company's actions. The issuance is backed by the U.S. International Development Finance Corporation (DFC) and expires in 24 years, that is May 2045.
Santander and BTG Pactual act on this issuance as bookrunners for the placement. Santander has also served as the structuring bank for the process of obtaining the social bond classification for the issuance.
Rafael Gómez del Río, CEO of Sacyr Concessions, underlined that 'the issuance of the first social bonds for an infrastructure project in Latin America poses a notable milestone in Sacyr Concessions’ 2021-2025 Strategic Plan, and by extension, Sacyr Group’s'.
Rafael Noya, Global Head of Global Debt Financing of Santander Corporate & Investment Banking states: “We are very proud of having helped Sacyr to issue the first social bond for an infrastructure project in Latin America. Santander is committed to walk with our clients in their transition towards a more sustainable business model, and investors are responding with strong interest to this type of products.”
DFC’s Acting CEO Dev Jagadesan said: “DFC is pleased to provide a guaranty in support of Sacyr’s social bond issuance for a key infrastructure project that will promote linkages between poorer regions in northern Colombia and economic centers, while encouraging local financial participation and investment. The bond issuance is an exciting step toward advancing development and economic growth through this critical roadway project”.
The classification as social bond for the issuance, is preceded by an evaluation and analysis process by an independent third party (V.E.) that confirms the bonds alignment with a series of criteria defined by the ICMA (International Capital Markets Association) under the “Social Bond Principles 2020”. Among other factors, they assess the positive impact that the project will bring to the nearby communities to the project’s influence area by means of the funds obtained through the issuance.
The investor’s interest on assets classified according to ESG criteria has skyrocketed in the past years. Only in 2020, 528,000 million dollars were issued in this marked as opposed to 209,000 million in 2019, which is a 153% increase according to data compiled by Dealogic y Bloomberg.
Sacyr Concessions, through the Montes de María Road Concessionaire, develops the 4th Generation (4G) Puerta de Hierro-Palmar de Varela y Carreto-Cruz del Viso Project in the Sucre, Bolívar and Atlántico Caribbean departments. The 198-kilometer road corridor connects the main seaports and cities of the Colombian Caribbean.
Contribution to socio-economic development
Between the Bolívar and Sucre departments, stands the Montes de María subregion, an area historically devastated by illegal armed violence and displacement.
The project's execution has had a great positive impact on the area of influence of these three departments and has created more than 2,500 direct and indirect jobs at the height of its execution stage. Close to 70% of the workers were locals. Therefore, the improvement operations on the corridor contribute to local socio-economic development and ease the transportation of merchandise and people.
Besides the project’s construction, the Concessionaire has boosted the region’s socio-economic development by supporting women. According to their culture, the women of this region are experts in weaving backpacks and hammocks, as well as agricultural production.
During the construction period, the Concessionaire has carried out nearly 500 activities with the communities that have benefitted more than 6,000 people.
Among these activities, those related to environmental conservation, training courses, and female empowerment are especially noteworthy.