Milbank LLP advised the US International Development Finance Corporation (DFC, formerly OPIC) as guarantor in connection with the issuance of COP 760 million (approximately USD 203 million) 4.100% senior secured UVR indexed Rule 144A notes due 2045 by a Colombian toll-road operator Montes de Maria, controlled by Sacyr Concesiones S.L., one of the world’s largest companies engaged in developing transportation concessions. This issuance aims to refinance the existing loan that was used to construct or develop over 192 km of toll roads (the Puerta de Hierro Toll Road). The bonds qualified as social bonds under the “2020 Social Bonds Protocol” issued by the International Capital Markets Association (ICMA).
The Milbank deal team was led by Global Capital Markets partner Carlos Albarracín and Global Project, Energy and Infrastructure Finance partner Alec Borisoff, along with Global Capital Markets associates Lyndon Plothow, Marco Zalidvar and Anna Zauner and Global Project, Energy and Infrastructure Finance special counsel Alexis Sáinz.
Mr. Albarracín said, “Milbank is pleased to assist DFC on this ‘first-of-its-kind’ transaction in Latin America and contribute to Colombia’s social and economic development and to securing long-term, low-cost financing for the Puerta de Hierro Toll Road, which connects to major Caribbean port cities, enabling increased travel speeds.”
Mr. Borisoff said, “We are honored to work with DFC in connection with this major infrastructure project in Colombia. This financing highlights the firm’s continued commitment to financial innovation and to developing transportation infrastructure projects globally and particularly in Latin America.”
Milbank’s Latin America practice has received global recognition from industry publications – particularly in the transportation infrastructure space. Milbank has previously advised on ten other 4G Toll Road financings in Colombia, including Pasto Rumichaca, and various award-winning projects such as Alto Magdalena Toll Road (named “Best Local Currency Financing” by LatinFinance), Conexión Norte (named “Best Road Financing” by LatinFinance), Pacífico 1 (named “Best Local Currency Financing” by LatinFinance) and Pacífico 3 (named “Best Road Financing” and “Best Infrastructure Financing – Andes” by LatinFinance, “Latam P3 Deal of the Year” by PFI and “Latin America Roads Deal of the Year” by IJGlobal).
