28 April, 2020 Colombia

Multiple firms behind Colombian 4G road financing

PPU

Jones Day’s Miami and Madrid offices and Posse Herrera Ruiz in Bogotá have helped the concession arm of Spanish construction company Sacyr obtain a US$510 million financing for a motorway project in north-eastern Colombia.

Philippi Prietocarrizosa Ferrero DU & Uría (Colombia) advised lead arrangers JP Morgan and Deutsche Bank in the deal. The two banks led a syndicate of international lenders, which made the first disbursement on 16 April.

Administrative and collateral agent Citibank relied on counsel from Alston & Bird LLP in Charlotte as well as a separate PPU team in Bogotá.

It is understood that Milbank in New York advised the lenders too, but Latin Lawyer was unable to confirm this prior to publishing

Sacyr’s concessionaire Unión Vial Río Pamplonita received the financing in two tranches. The first dollarised portion was worth US$450 million, while the lenders provided 245 Colombian pesos (US$60 million) in the second tranche.

Unión Vial will use the loan to fund the construction of the 62-kilometre Pamplona-Cúcuta dual carriageway in the northern department of Santander. The motorway will connect the north-eastern part of the country to the Venezuelan border.

The project is part of Colombia’s 4G initiative, which is aimed at renovating the country’s road network. Unión Vial will manage the construction of the project, which will cut travel times and provide safer road surfaces.

This is the most recent of Sacyr’s four 4G projects, which together are worth over US$2 billion. In February, the Spanish construction company obtained a US$185 million financing for another motorway project, also in northern Colombia.

Counsel to Sacyr Concesiones

Jones Day
Partner Richard Puttré and associate Elba Bermudez in Miami, and of counsel Fernando Lillo in Madrid

Posse Herrera Ruíz
Partner Mariana Posse and associates Jesús Albarrán, Alejandro González, Diana Rueda, María Camila Ordóñez and Lucía Martínezin Bogotá

Counsel to JP Morgan Chase Bank and Deutsche Bank

Philippi Prietocarrizosa Ferrero DU & Uría (Colombia)
Partners Jorge Di Terlizzi, Hernando Padilla, Javier Valle and Luis Fernando Macías and associates Carlos Padilla, Clara Robledo-Sánchez, Santiago Fuquen, Ximena González, Pedro Arango, Juan Gabriel Silva, María Paula González and Elena Gonos in Bogotá

Counsel to Citibank

Philippi Prietocarrizosa Ferrero DU & Uría (Colombia)
Partner Nicolás Tirado and associates Maria Garrido and Daniela Vargas in Bogotá

Alston & Bird LLP
Partner Brad Johnson and senior attorney Gina Masterson in Charlotte

Source: Latin Lawyer

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