Clifford Chance advises on Alto Magdalena, Colombia’s first 4G toll road project refinancing
New York: Leading international law firm Clifford Chance has advised MUFG Bank, Sumitomo Mitsui Banking Corporation, Banco de Bogotá, Fondo de Capital Privado Deuda Infraestructura Colombia, Fondo de Deuda Senior para Infraestructura en Colombia CAF-AM Ashmore I and Financiera de Desarrollo Nacional (FDN) in connection with the approximately US$510 million multi-source and multi-currency refinancing of the Girardot – Puerto Salgar – Honda 4G toll road in Colombia, known as Alto Magdalena.
The refinancing consists of a US$164.5 million senior dollar credit facility provided by MUFG Bank and Sumitomo Mitsui Banking Corporation, a COP1.2 trillion senior Colombian peso facility provided by Banco de Bogotá S.A., Fondo de Capital Privado Deuda Infraestructura Colombia, Fondo de Deuda Senior para Infraestructura en Colombia CAF-AM Ashmore I and FDN and a COP115 billion subordinated Colombian peso facility provided by FDN. The refinancing structure also involved interest rate hedges.
Want to share your news with your industry? Submit a press release.
Top 1000 Companies Ranked by Revenue – in Multiple Sectors & Countries.
The project is being developed by Concesión Alto Magdalena, and owned by Constructora Meco, M.H.C. Ingeniería y Construcción de Obras Civiles, Pavimentos Colombia and Ingeniería de Vías. Structure Banca de Inversión acted as financial advisor to the Sponsors. The transaction breaks new ground as the first refinancing under Colombia’s 4G Program.
Lead associate Luis Maria Clouet, said: “The refinancing of Alto Magdalena, along with the acquisition of the Costera Cartagena Barranquilla 4G toll road by ISA that closed recently, will likely open the door to similar corporate M&A and refinancing opportunities in Colombia. The current credit environment provides unique opportunities to sponsors and developers in Latin America to refinance their existing debt at much lower rates. We are optimistic about 2021 since the continuing fiscal stimulus and general hope around COVID-19 vaccines will certainly preserve the current state of affairs for the first and second quarters of the year.”
Associate Julián Hurtado Vallejo added, “As more 4G projects continue to achieve construction completion, we can expect to see sponsors in Colombia seeking liquidity in preparation of the upcoming 5G projects. The refinancing of Alto Magdalena allowed to unlock the existing Sponsors’ equity in an efficient manner while maintaining the value of the collateral of the refinancing lenders over an operating asset.”
The Firm’s team was led by partner Gianluca Bacchiocchi and also included Tax partner Avrohom Gelber and associates Tali Lee and Fernando Castillo Villalpando. Washington, DC-based partner Megan Gordon together with counsel Jacqueline Landells advised on anti-corruption/sanctions related provisions of the deal. Additionally, counsel Greg Kahn and associate Jacklyn Hoffman advised on the New York law hedges.