Interconexion Electrica S.A. (ISA)

Active

Prospective

ISA is responsible for electricity transmission in Colombia. ISA owns about 7,900 KM of transmission lines (80% of the Colombian market, including its participation in Transelca). ISA has also diversified its business operations and in recent years have started operating in the telecommunication sector through its subsidiary Internexa (ISA is currently the second largest telecom company in the country). ISA provides telecom services nationally, but, starting in 2001, the company will expand its services to the US, Mexico and Venezuela, among other countries. The first phase of its privatization occurred in Dec. 2000, when 28.64% of its shares were sold in the local stock exchange and through the banking system. Individuals and four pension funds (Fondo de Pensiones Proteccion, Skandia, Colfondos, and Horizonte) purchased these shares for US$ 45.7 million (Pesos$ 102 billion). In 2001, ISA intended to issue shares in the New York Stock Exchange through American Depository Receipts (ADRs). In 2004 ISA deposited and listed its Level I ADRs with the Security and Exchange Commission permitting trading of its shares over the counter or secondary market. Each ADR represents 25 shares that are traded OTC under the ticker symbol IESFY. In 2005, ISA's participated in the telecommunications sector with its brands INTERNEXA and FLYCOM COMUNICACIONES. In December 2007, a placement of 56.4 million shares was purchased by pension funds and individuals through book-building public offer at a subscription price of $7,076 pesos per share for a total of US $192 million. Approximately 15% (US $28.8 million) were purchased by individuals. This raised the private sector share in ISA to 29.7%. ISA sold shares through a book-building process open to the public between Nov. 30 and Dec. 2 2009. The offer was 2.9 times oversubscribed. The Colombian government, which controls ISA, did not participate in the share offer, and saw its stake in company was diluted to 51.4% of the company from 52.9%, according to ISA's Chief Executive Luis Fernando Alarcon. Approximately US$4.5 mn were invested in the telecom sector Figures for Commit. Inv. in Facilities during the following years were removed because private parties do not control ISA (ownership is less than 51%): 2001 987.5 2002 889.2 2003 742 2004 785.7 2005 921.4

Energy

Colombia

High

World Bank Group

Project

Commercial, Government, Power Generation (CCGT), Telecommunications