Assured Guaranty expands LatAm footprint in Colombian toll road deal

Financial guarantor Assured Guaranty Municipal Corp (AGM) has participated privately in a US International Development Finance Corporation (DFC) deal to guarantee the principal and interest payments on approximately 760 billion Colombian pesos (approximately $209 million) of notes issued by Patrimonio Autónomo Montes de María (PAMM).

PAMM is a special-purpose trust formed by the Colombian concessionaire, which is ultimately owned by Sacyr. The concession was granted by the Agencia Nacional de Infraestructura, the Colombian National Infrastructure Agency, to construct, operate and maintain approximately 198 km of the Puerta de Hierro – Palmar de Varela y Carreto – Cruz del Viso toll road.

The notes, which are indexed to the Unidad de Valor Real, were issued to refinance the issuer’s mini-perm loan provided by BTG Pactual and Santander for a fourth generation toll road concession in Colombia. The 144A Reg S offering was issued at a fixed rate with a final maturity in 2045.

The notes will help develop access for Colombian issuers to global debt capital markets. AGM said they comply with the social bond principles of the International Capital Market Association, as the proceeds will be used to achieve positive social outcomes.

Lorne Potash, managing director of infrastructure finance, Americas at AGM, said the deal extends Assured Guaranty’s reach into Latin America.