Local lender Davivienda and Scotiabank Colpatria provided the seven-year credit facility, said two sources familiar with the situation.

The sponsors, the SPV Termoyopal Generación 2 and Central Termoeléctrica El Morro, will use proceeds to add 40MW to its 110MW of combined capacity to reach a total of 150MW.

The Termoyopal project won reliability charges in Colombia’s power capacity tender earlier this year, which will expire in 2028.

The SPVs are controlled by three private equity funds, including a fund managed by Colombian Mercantil Colpatria, the Private Equity Fund Altra II managed by Altra Investments and Gestor Andino, which is ultimately controlled by SCL Energía Activa and Larraín Vial.

In March, the sponsors hired Itaú as financial advisor for the sale of two thermoelectric power plants, Termoyopal and Termovalle, Inframation reported.

The sponsors were also seeking to raise up to USD 110m to refinance previous debt associated with its 240MW thermal power plant Termovalle, and fund an expansion of the project, Inframation also reported.

Philippi Prietocarrizosa Ferrero DU & Uría (PPU) served as legal counsel to the borrowers, while Gómez Pinzón Abogados was the legal advisor to the lenders.