Metro de Medellín successfully completed the necessary procedures to issue, for the first time in its history, sustainable bonds for $350,000 million.
The funds will be used to finance important strategic projects required by the Company in the short and medium term.
According to Metro de Medellín’s official website, in the securities market, bonds are equivalent to a loan financing mechanism, whereby the issuing entity receives funds for which periodic interest is paid and the borrowed funds are repaid at the end of the agreed term.
The operation is a type of loan, so it does not represent a change of shares or participation in the shares for its owners, the District and the Governor’s Office; therefore, it is not a privatization.
Key Milestone
The bond issue represents a major milestone for the Company because it positions it in the highest national and international standards of management and administration, allowing it to access the securities market where there is a greater amount of resources with lower financing costs and longer payment terms than in the traditional financial market.
This translates into more convenient debt repayment installments that are in line with the Company’s cash flow.
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The bonds will have five series and their nominal value will be $1,000,000 with a term to maturity of between one (1) and thirty (30) years from the date of issuance.
The payment of capital and interest will be made in pesos and the maximum rate of return of the bonds for each sub-series will be defined by the Ministry of Finance.
The resources expected to be obtained from the bond issue will be allocated to sustainable projects, that is, projects that have both an environmental and social impact.
Latam Mobility in Colombia
Latam Mobility, the largest sustainable mobility community in Latin America, will arrive again in Medellin for its meeting in 2024.
The two-day event, on June 5 and 6, will bring together top industry leaders, along with public sector personalities, to offer their perspectives on advances in sustainable mobility, electromobility and sustainability.
The Orquideorama Botanical Garden in Medellin will be the stage for launches, news, projects and networking, with the aim of boosting sustainable investments in Latin America.
More information about the meeting and participation here
