Divestment of GyM S.A. in the Mining Services Sector (Contract Mining) to Reduce Its Indebtedness within the Crisis of the Construction Sector

• The proceeds from the sale of the stake in the mining services company
STRACON GyM will be used to pay the debt with the financial creditors of
GyM S.A., which is the construction company of the Graña y Montero Group.

• With regard to Law 30737, recently approved by Congress in replacement
of the Emergency Decree 003, Graña y Montero informed that it is
awaiting the publication of its regulation to constitute the established
trust, currently having a preliminary list of possible assets that add
up to US$ 150 million for that purpose.

LIMA, Peru–(BUSINESS WIRE)–Graña y Montero S.A.A. (NYSE:GRAM) (BVL:GRAMONC1) (“the Company” or
“Graña y Montero”) a leading Engineering and Construction company,
announced that GyM S.A. has signed a sale contract for its 87.59% stake
in STRACON GyM, a company specialized in contract mining services, for
an approximate amount of US$ 77 million. The closing of the transaction
is scheduled to materialize within a maximum period of ten business days.

It should be noted that the total amount received by the Graña y Montero
Group, as a result of the asset sales has been and will be used to
comply with the obligations that the Group has with financial
institutions. In line with the aforementioned, all of the proceeds from
this sale will be used to amortize the senior financial obligations of
GyM S.A. with Scotiabank Perú S.A.A. (derived from the Loan Agreement of
July 14, 2015) and, partially, its financial obligations to the
creditors of the Syndicated Line (Banco de Crédito del Perú, Scotiabank,
Interbank, Citibank Perú and BBVA), reducing 55% of the debt of the
construction company with the financial system.

With this asset sale, the Graña y Montero Group would be fulfilling the
purpose of strengthening its construction company. Luis Diaz Olivero,
the Group's CEO, said: "STRACON GyM was one of the assets that the Group
evaluated to sell within the debt reduction process announced in 2017.
By using these cash flows to reduce GyM's debt we are financially
strengthening our construction company, which is currently facing credit
restrictions from banking entities, just like the rest of companies in
the sector."

With regard to Law 30737, recently approved by Congress in replacement
of Emergency Decree 003, Graña y Montero informed that it is awaiting
the publication of its regulation to constitute the established trust,
currently having a preliminary list of possible assets that amount to
US$ 150 million for this purpose.

Similarly, Díaz Olivero said that with the divestment in STRACON GyM,
the construction company will have greater facilities to focus on the
large contracts for engineering, procurement and construction of the
mining sector, thanks to its experience and expertise. "Graña y Montero
has developed more than 50 mining projects, has assembled 20
concentrator plants, including the largest copper concentrator plant in
the world. With our new approach, the team will be able to concentrate
on what we know best, which is the engineering and construction of
mining projects, adding more value to the sector,” he concluded.

About STRACON S.A.C

STRACON S.A.C. is a company formed by Steve Dixon, current CEO and
co-founder of STRACON GyM, and Ashmore Group, a global manager of
investment funds listed on the London Stock Exchange, focused on
emerging markets and which currently manages approximately US$ 70
billion of capital.

Contacts

Graña y Montero S.A.A.
Samantha Ratcliffe, 511-213-6573
Head
of Investor Relations
[email protected]
[email protected]
http://investorrelations.granaymontero.com.pe/