FREQUENT

QUESTIONS

FINANCIERA DE

DESARROLLO NACIONAL

www.fdn.com.co

CONTENTS

GENERALE QUESTIONS

1. What is Financiera de Desarrollo Nacional?

2. Who are the FDN shareholders?

3. What is the FDN Corporate Governance like?

4. How is the FDN board of directors composed?

5. What products and services does FDN offer?

INVESTOR RELATIONSHIP QUESTIONS

1. What is a bond?

2. What are the bonds issued by FDN?

3. How many bond issuances has FDN carried out?

4. What will resourcess from the 2020 ordinary bond issuance

be used for?

5. What is the risk rating of the bonds issued by FDN?

6. What are the terms of the ordinary bonds issued by FDN?

7. Where can I find the results of the placemente of FDN

bonds?

8. What should I do to buy FDN bonds?

9. What should I do if I have other questions? Who should I

contact?

GENERAL QUESTIONS

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WHAT IS FINANCIERA DE

DESARROLLO NACIONAL?

Financiera de Desarrollo Nacional is a private, specialized, technical and independent

development bank that works to increase liquidity in the infrastructure sector. Its specialization

and knowledge in structuring and financing allows it to design sophisticated and innovative

solutions, aimed at properly managing risks, pulling and attracting investors and funders to

participate in financing schemes for infrastructure projects.

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WHO ARE THE FDN SHAREHOLDERS?

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The FDN shareholders are: International Finance Corporation (IFC), Sumitomo Mitsui Banking

Corporation (SMBC), Development Bank of Latin America (CAF) and Grupo Bicentenario

S.A.S. Grupo Bicentenario S.A.S.

The majority shareholder, holds 73.37%. IFC and SMBC each holds 8.89% of share capital,

CAF holds 8.65% and other shareholders hold 0.26%.

Having shareholders such as IFC, CAF and SMBC is a sign of trust in the entity, which

strengthens its technical capacity to provide financing and structuring solutions, focused on the

development of infrastructure in Colombia. These entities provide Know How, good practices

and are a national and international seal of guarantee, which undoubtedly represent an

endorsement for the purposes of FDN.

WHAT IS THE FDN CORPORATE

GOVERNANCE LIKE?

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FDN has a strong Corporate Governance that complies with OECD standards and ensures

that FDN decisions, both in funding and structuring and advice, are based only on technical

foundations. As a result, projects structured, financed, or advised by the entity must be

commercially viable and have the positive vote of at least one of the representatives of the

multilateral organizations in the Board of Directors of the institution. This is not only an

important factor for the sustainability of the infrastructure sector development, but also

contributes to strengthening the confidence of actors who participate under different roles

such as funders, builders, insurers or operators.

1.

2.

G E N E R A L

Q U E S T I O N S

HOW IS THE FDN BOARD OF DIRECTORS

COMPOSED?

www.fdn.com.co

The FDN Board of Directors is composed of 9 members, most of which are members

independent from the government, which is a reassurance factor for investors, banks,

concessionaires and for all actors concerning the actions carried out by the entity. The

Board is composed of a representative of IFC, one of CAF, one of SMBC, three

independent and three appointed by Grupo Bicentenario.

G E N E R A L

Q U E S T I O N S

www.fdn.com.co

WHAT PRODUCTS AND SERVICES

DOES FDN OFFER ?

G E N E R A L

Q U E S T I O N S

FDN, in its goal of overcoming barriers in the infrastructure sector and providing solutions, promotes

efficient financial structures in order to achieve competitive sources of long-term financing and mitigate

refinancing risks. With innovative financing products such as senior debt, peso funding line, liquidity

line, guarantees, investment in infrastructure bonds, structuring of debt securities issuances in the

capital market incorporating risk mitigation products, among others, it facilitates private sector

participation in the development of infrastructure projects. Likewise, FDN addresses one of the greatest

needs of the public sector entities, which is the comprehensive structuring and management of

infrastructure projects, ensuring that they are solidly designed to attract investment and private

financing, and thus support the reduction of social and economic gaps. Accompaniment related to

structuring includes advice on the preparation of prefeasibility studies, structuring, assessment,

validation, and management of infrastructure projects in the country.

INVESTOR

RELATIONSHIP

QUESTIONS

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WHAT IS A BOND?

Bonds are securities issued by companies in order to procure resources from the capital

market. These securities represent a part of a credit constituted by the issuing entity in favor of

the natural persons or legal entities who acquire them (holders). Once the bond term has

expired, in addition to the bond value, the investor will receive interest at the rate that has been

agreed. These securities are considered fixed income.

www.fdn.com.co

www.fdn.com.co

The bonds issued by FDN are fixed-income securities through which the issuer (FDN)

undertakes to repay the principal amount on a given date (maturity) and/or make periodic

interest payments during the term of the loan to investors or holders of those bonds.

WHAT ARE THE BONDS

ISSUED BY FDN?

I N V E S T O R R E L A T I O N S H I P

Q U E S T I O N S

www.fdn.com.co

To date, FDN has carried out two private and one public issuances. The private issuances

were in 2016, which consisted of an issue of private subordinated bonds that were acquired

by the Nation worth $2.5 billion pesos and in 2017, which was an issuance of private

ordinary bonds acquired by the Fondes Special Account worth $2.67 billion pesos. The last

issuance was made in October 2020 worth $1 billion pesos, in which ordinary bonds were

issued. The bonds are part of the principal market and are intended for the general public,

including pension and severance fund management companies, and funds managed by

them. For more information about the bonds issued by FDN, visit our website

www.fdn.com.co

1.

HOW MANY BOND ISSUANCES HAS

FDN CARRIED OUT?

I N V E S T O R R E L A T I O N S H I P

Q U E S T I O N S

www.fdn.com.co

The resources from the issuance will be allocated to the development of the FDN corporate

purpose, which focuses on the financing and structuring of infrastructure projects in

Colombia. Most of these resources will be disbursed in credits that already exist today and

which projects are still being executed. For more information about the use of resources,

see the Issuance Prospectus on our website www.fdn.com.co

1.

WHAT WILL RESOURCEES FROM THE 2020

ORDINARY BOND ISSUANCE BE USED FOR?

I N V E S T O R R E L A T I O N S H I P

Q U E S T I O N S

www.fdn.com.co

On July 1, 2020, Fitch Ratings Colombia S.A. assigned an AAA (col) rating to the Issuance.

The support and development of the reasons for the rating can be found in Annex B to Part

Four of the Information Prospectus. For more information about the bond rating, visit our

website www.fdn.com.co

1.

WHAT IS THE RISK RATING OF THE BONDS

ISSUED BY FDN?

I N V E S T O R R E L A T I O N S H I P

Q U E S T I O N S

www.fdn.com.co

The terms of the bonds are 3 years, 5 years, 10 years and 15 years. In addition, these

bonds are indexed in IBR (3 years), CPI (5 and 10 years) and UVR (15 years). For more

information about the terms and profitability, see the issuance results on our website

www.fdn.com.co

1.

WHAT ARE THE TERMS OF THE ORDINARY

BONDS ISSUED BY FDN?

I N V E S T O R R E L A T I O N S H I P

Q U E S T I O N S

www.fdn.com.co

The issuance prospectus, offer notice and results of the ordinary bonds placement can be

found on the FDN website www.fdn.com.co

1.

WHERE CAN I FIND THE RESULTS OF THE

PLACEMENT OF FDN BONDS?

I N V E S T O R R E L A T I O N S H I P

Q U E S T I O N S

www.fdn.com.co

The ordinary bonds issued in 2020 are free to be traded on the Colombian Stock Exchange

and can be acquired through a Securities Brokerage Firm. The chosen Brokerage Firm is

responsible for providing the customer with all necessary information about the purchase

process and the terms of the FDN bonds.

1.

WHAT SHOULD I DO TO BUY FDN BONDS?

I N V E S T O R R E L A T I O N S H I P

Q U E S T I O N S

www.fdn.com.co

If you have further questions, the Investor Relations Office can be contacted via email

ir@fdn.com.co or by the following phone: + (571) 3264999 opción 9 + (571) 326 4999

opción 9

1.

WHAT SHOULD I DO IF I HAVE OTHER

QUESTIONS? WHO SHOULD I CONTACT?

I N V E S T O R R E L A T I O N S H I P

Q U E S T I O N S

www.fdn.com.co

Thank you

Investor Relationship Office

ir@fdn.com.co

Phone: + (571) 326 4999

opción 9

www.fdn.com.co