Latin America: Five lenders back Conconcreto-Vinci SPV in Colombia

20 February 2018 - 12:00 am UTC

The SPV behind the Bogotá-Girardot highway has submitted evidence of financial capability to the national infrastructure agency (ANI).

ANI said five lenders signed soft commitments for the combined COP 1.8trn (USD 631m) to support the construction of the road. BBVA, national development bank FDN, and ING are backing the financing, in addition to infrastructure debt funds Compartimiento Deuda Privada Infraestructura I del Fondo de Capital Privado FCP 4G – administered by Credicorp Capital and Sura Asset Management, and Fondo de Capital Privado Infraestructura Colombia, managed by BlackRock Infrastructure Management.

The SPV Concesionaria Vía 40 Express is discussing with lenders a multi-tranche financing package for up to 80% of the project cost, according to a source familiar. Various financing options are being considered, including a miniperm solution, a long-term credit facility and tapping the debt capital markets.

Yet to be decided is the debt amount, which will be subject to negotiations to determine the final structure and costs of funding, among other details, the source added.  

Sponsors are looking into alternative structures that draw participation from lenders such as ING and other international banks, which have not participated in deals denominated in local currency.

FDN’s board had approved up to COP 500bn in senior debt in December to support the road, saying it would later revise its participation after a final financial structure is set and due diligence is concluded.

The SPV Concesionaria Vía 40 Express comprises French developer Vinci (50%), and Colombian builder Constructora Conconcreto (50%).

US-based Astris Finance serves as financial advisor to the sponsors.

The sponsor in 2016 signed a PPP contract to design, finance, build, operate and maintain the COP 1.7trn Vía 40 Express concession, between Bogotá and Girardot. As an unsolicited proposal, the project is not backed by availability payments from the government.

The project includes revamping 155km of an existing highway connecting Bogotá to Girardot in the Cundinamarca department. It also involves adding a third lane to a 67km road linking the Sumapaz tunnel on the border between Tolima and Cundinamarca to Granada in Meta department.

Sponsors, advisor and lenders declined to comment.

SPV