COP760 billion guaranteed debt financing of toll road in Colombia

Financial guarantor Assured Guaranty Municipal Corp. (AGM), a subsidiary of Assured Guaranty Ltd. (NYSE:AGO) (together with its subsidiaries, Assured Guaranty), announced that it has participated privately in support of the U.S. International Development Finance Corporation (DFC) to guarantee the principal and interest payments on approximately 760 billion Colombian pesos (approximately US$ 209 million) of notes indexed to the Unidad de Valor Real, issued today by Patrimonio Autónomo Montes de María (the Issuer), a special-purpose trust formed by the Colombian concessionaire. The Colombian concessionaire is ultimately owned by Sacyr S.A. The notes were issued to refinance the Issuer’s mini-perm loan provided by BTG Pactual and Santander for a fourth generation (4G) toll road concession in Colombia. The notes comply with the Social Bond Principles of the International Capital Market Association to use proceeds for positive social outcomes.

The notes, issued at a fixed rate with a final maturity in 2045, are expected to help develop access for Colombian issuers to global debt capital markets. The notes were offered pursuant to Rule 144A/Regulation S to institutional investors.

The concession was granted by the Agencia Nacional de Infraestructura (the Colombian National Infrastructure Agency) to construct, improve, operate and maintain approximately 198 km of the Puerta de Hierro – Palmar de Varela y Carreto – Cruz del Viso toll road corridor in the northern part of the country.

AGM is rated AA by S&P Global Ratings, AA+ by Kroll Bond Rating Agency and A2 by Moody’s Investors Service.

Lorne Potash, Managing Director, Infrastructure Finance, Americas, AGM, commented:

“We are pleased to have developed our new relationship with Sacyr, a leading global concessions and construction organization, and to have once again extended our international reach into Latin America. This reinforces Assured Guaranty’s unique position as a financial guarantor to provide infrastructure finance solutions to our clients worldwide.”

Sam Nakhleh, Director, Infrastructure Finance, Americas, AGM, commented:

“This issuance is the successful collaboration of AGM, Sacyr, DFC and the parties’ advisors to bring low cost, long-term financing to a Colombian infrastructure transaction.”

Dev Jagadesan, Acting CEO, U.S. International Development Finance Corporation (DFC), commented:

“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.”

AGM’s legal advisers on the transaction were Hogan Lovells US LLP and Brigard Urrutia (Colombia).

DFC’s legal advisers on the transaction were Milbank LLP and Brigard Urrutia (Colombia).

The Joint Bookrunners in the transaction were BTG Pactual and Santander.

AGM is a subsidiary of Assured Guaranty Ltd. (together with its subsidiaries, Assured Guaranty). Assured Guaranty Ltd. is a publicly traded (NYSE: AGO), Bermuda-based holding company. Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and international public finance, infrastructure and structured finance markets, and also provides asset management services. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com

Cautionary Statement Regarding Forward-Looking Statements:

Any forward-looking statements made in this press release reflect Assured Guaranty’s current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, those resulting from Assured Guaranty’s inability to execute its business strategies; the demand for Assured Guaranty’s financial guarantees; the development, course and duration of the COVID-19 pandemic and the governmental and private actions taken in response, the effectiveness, acceptance and distribution of COVID-19 vaccines and the global consequences of the pandemic and such actions; those risks and uncertainties resulting from changes in rating agency models or opinions; adverse credit developments related to Puerto Rico or other portions of Assured Guaranty’s guaranteed portfolio; and other risks and uncertainties that have not been identified at this time, management’s response to these factors, and other risk factors identified in AGL’s filings with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of April 29, 2021. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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