29 March, 2019 Colombia

Medellín toll road gets massive dual currency financing

Banking, Finance and Capital Markets - Infrastructure and Projects

Paul Hastings LLP in New York and Colombian firm Godoy & Hoyos have helped Devimar, a consortium made up of construction companies Sacyr, Strabag and Conca, obtain US$710 million financing for a 4G toll road project.

The banks enlisted Clifford Chance’s DC, Madrid and New York offices and Colombia’s Brigard Urrutia. 

US investment manager BlackRock, which was one of the lenders, turned to Philippi Prietocarrizosa Ferrero DU & Uría (Colombia). 

The financing closed on 22 March.

The senior lenders contributed US$220 million, while the peso-denominated lenders provided 1.3 trillion pesos (US$430 million). Blackrock contributed another 190 billion pesos (US$60 million).

The funds will go toward Autopista al Mar 1, a project that will establish a connection between the city of Medellín and the main motorways in Colombia by building roadways stretching 176 kilometres.

The toll road is part of Colombia’s 4G infrastructure programme that began in 2016. It aims to improve the country’s road network. It includes some 50 projects and more than 10,000 kilometres of new roadway and motorway.

The programme has suffered delays since it got underway because of corruption scandals, some of which involved beleaguered Brazilian construction group Odebrecht.

In a January report, Colombian president Ivan Duque was quoted as saying that 70% of all projects will be financed and under construction by March 2019.

Counsel to Sacyr, Strabag and Concay

Paul Hastings LLP

Partner Robert Kartheiser and associates Thomas Sines and Louise Farias in New York

Godoy & Hoyos

Partner Jaime Moya and associtaes Steffany Serebrenik and Natalia Saade in Bogotá

Counsel to KfW IPEX-Bank, Société Generale, Sumitomo Mitsui Banking Corporation, Corporación Andina de Fomento, Financiera de Desarrollo Nacional, Instituto de Crédito Oficial and Inter-American Investment Corporation

Clifford Chance

Partner Fabricio Longhin and associates Alberto Haito, Alan Sakar Azuara and Pablo Ariel Fekete in Washington, DC; associates Gabriel Miranda and Eduardo Sanchez in Madrid; and associates Greg Kahn and Jacklyn Hoffman in New York

Brigard Urrutia. 

Partners Manuel Fernando Quinche and César Felipe Rodríguez, and associates Mario Alejandro Forero, Ana María Rodríguez, Nicolás Alonso and María Alejandra Salamanca in Bogotá

Counsel Blackrock

Philippi Prietocarrizosa Ferrero DU & Uría (Colombia). 

Partner Juan Fernando Gaviria and associate Camila Quintero and Ana Ramírez in Bogotá

Source: Latin Lawyer

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