The resources will be directed to finance two projects on the north coast of Colombia that will allow the connection of non-conventional renewable energies (wind and solar) to the National Interconnected System (SIN).
As part of its comprehensive sustainability strategy, ISA carried out its first green bond issue in Colombia for a value of COP 300,000 million. The resources will contribute to the connection of non-conventional renewable energies to the National Interconnected System (SIN) by financing two projects: 500 kV Costa Caribe Interconnection and Cuestecitas-Copey-Fundación Copey-Fundación 220 kV Interconnection.
This issuance represents a milestone in the green bond market, since it is the first green bond issuance by a company in the real sector, in the public securities market. And although this is a novelty, Grupo ISA already has experience in issuing green bonds: ISA CTEEP was the first company in the group and the first in the energy transmission segment to carry out an operation with “green debentures” in Brazil, for BRL 621 million with an excess demand of 2.5 times; and the subsidiary Consorcio Transmantaro was the first in Peru to issue green bonds in the international capital market for USD 400 million with an excess demand of 5.7.
“This is an important step in our contribution to the country’s energy transformation. We are committed to operating business in a responsible and consistent manner, as stated in the ISA2030 Strategy. We have a commitment not only in Colombia but also in the countries where we are, to decarbonize and make the energy matrices more flexible,” said Bernardo Vargas Gibsone, president of Grupo ISA.
The president of the Colombian Stock Exchange, Juan Pablo Córdoba highlighted that “the capital market continues to be the ally for the long-term financing strategies of Colombian companies, and today Grupo ISA confirms this through this successful issuance. We invite more companies to go to the capital market to continue with the economic reactivation of the country”.
The selection of the projects is due to an identification of their tangible environmental benefits, in addition to compliance with the Green Bond Principles (GBP-) and other internationally recognized sustainability standards.
The issue included a “Second Party Opinion” or “Second Party Opinion” by SITAWI, a Brazilian organization that mobilizes capital for a socio-environmental impact, which supported the management by stating that the connection of 1,397.2 MW of wind energy and solar to the SIN of Colombia, will allow the exchange of non-conventional renewable energy since without these projects part of the MW would be trapped without the possibility of connection.
This issuance of green bonds corresponds to subseries A9 (COP Fixed Rate) and G20 (UVR Fixed Rate) of the Fourteenth Tranche of ISA’s Internal Public Debt Securities Issuance and Placement Program. The total amount demanded amounted to COP760,796 million, with an excess demand of 2.54 times.
The placement was made through the Colombian Stock Exchange (BVC), under the Dutch auction mechanism. The placement agents were BTG Pactual SA, Credicorp Capital Colombia SA and Valores Bancolombia SA.