Goldman in $260m bond raise for Colombian roads

The ‘highways of prosperity’ project will be the first infrastructure endeavor financed through a private bond raise in Colombian history. 

Goldman Sachs has successfully led a $260 million bond raise for a trio of road projects that form part of Colombia's fourth generation ( 4G ) roads programme. 

The Pacific 3 concession includes the Grafiti-La Felisa, Irra-La Manuela and Tres Puertas-La Virginia connections, comprising 146 kilometres of new two-lane roadways, including one 3.4-kilometre tunnel and five shorter tunnels. Together, they will connect the departments of Antoiquia, Caldas and Risaralda, according to the Agencia Nacional de Infraestructura.

Upon receiving word of the bond raise results, Colombian President Juan Manuel Santos Calderon said: “The issue was successful and the importance of this news is that this is the first time this instrument is being used to fund an infrastructure project [in Colombia]. The fact that it was placed in full means there is great confidence in what we are doing in the structuring and construction of [4G project] concessions.”

Construction officially began on Pacific 3 last October by a consortium led by Construcciones Condor (Colombia), with a 48 percent share. Maria Alberto Huertas Cotes (Colombia) and Constructora Meco Sucursal Colombia (Costa Rica) round out the consortium, each holding 26 percent of it. The concession contract expires in 2039.