First Colombian 4G road to shop for refinancing

25 February 2020 - 12:00 am UTC

The SPV Concesión Alto Magdalena is seeking a COP 1.55trn (USD 454.5m) in debt to refinance its Girardot – Honda – Puerto Salgar highway in Colombia, said two sources briefed on the situation.

The SPV, which comprises Costa Rican builder Constructora Meco (30%) and Colombian construction companies Mario Huertas Cotes (30%), Pavimentos Colombia (30%) and Ingeniería de Vías (10%), originally won the 25-year PPP contract from the National Infrastructure Agency (ANI) in September 2014 to design, finance, build, operate and maintain the 190 km highway.

The refinancing will mature in 2038 for both portions, a USD 140m loan and a COP-denominated facility.

Local lender Bancolombia, Japanese bank MUFG and a CAF-Ashmore administered infrastructure debt fund are expected to join the transaction.

Structure Banca de Inversión is serving as financial advisor to the sponsors.

The deal will be backed by government availability payments called vigencias futuras and cash flow from tolls. The highway is anticipated to become operational in 1Q20.

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