Sacyr-backed SPV inks Colombian road transaction

17 July 2019 - 12:00 am UTC

The Sacyr-led SPV behind the Rumichaca–Pasto highway project signed a COP 1.8trn (USD 562m) credit facility to fund construction of the road, according to a 17 July Ministry of Transportation release.


The loan carries a tenor of eight years, a source familiar with the situation said.


The transaction has yet to be disbursed.


Nine lenders joined the transaction, including Bank of China, Crédit Agricole, Spanish development lender Instituto de Crédito Oficial (ICO), JP Morgan, Metlife, MUFG, Overseas Private Investment Corporation (OPIC), Santander and SMBC.


JP Morgan and Santander were the lead arrangers of the transaction.


The SPV Unión del Sur backed the financing with availability payments (vigencias futuras) agreed with the government in addition to revenue from tolls.


The highway project has a cost of COP 2.9trn and runs for approximately 80km between the Nariño and Cauca departments, reaching the border with neighboring Ecuador. The project includes adding a second lane in both directions on the existing road.


The SPV comprises Spanish and Ecuadorean builders Sacyr (60%) and Herdoíza Crespo Construcciones (40%).


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