One of the largest road construction plans approved under Colombia’s Fourth Generation infrastructure program
In a noteworthy Latin America project finance and infrastructure transaction, Milbank, Tweed, Hadley & McCloy LLP advised four international financial institutions in connection with the nearly US$1 billion financing for the Pacifico 1 toll road project near the northwestern city of Medellín.
Milbank Global Project Finance Group Leader Daniel Bartfeld, Global Capital Markets partner Carlos Albarracín, and Global Project Finance associate Jaime Ramirez led the Milbank team advising the lenders to a construction consortium comprised of Colombian firms Episol and Iridium.
The consortium is the first to receive international commercial bank financing for a project under Colombia’s Fourth Generation (4G) infrastructure program, which plans to develop roads, highways, railroads, and ports within the country. Pacifico 1, one of the largest toll road plans outlined under the 4G program, envisions improving transportation ties between Medellín and the Pacific Coast through building and repairing roads and constructing two tunnels, 54 bridges, and three roadway intersections.
Lenders advised by Milbank included Caixabank, Crédit Agricole, Mizuho Bank, and Sumitomo Mitsui Banking Corp., which provided the consortium with a US$150 million dollar-denominated loan. Colombian financial institutions granted a credit facility worth 2.2 trillion Colombian pesos, or approximately US$733 million.
Mr. Bartfeld said, “Milbank is very pleased to play a key role in this important financing transaction which is one of several that will help Colombia upgrade and expand its internal transportation system, a crucial factor in the country’s continued growth.”
Mr. Ramirez added, “This transaction represents a further evolution of the 4G toll road financing structure that we hope will serve as a model for the many financings that will follow, all of which are key to Colombia’s economic potential.”
Milbank is currently advising five other 4G toll road projects, in addition to the recently closed Pacífico Tres toll road project, where Milbank represented the Sponsors in a two-part debt issuance worth more than US$657 million.
In addition to Messrs. Bartfeld, Albarracín, and Ramirez, Milbank lawyers on the financing included Global Project Finance associates Maria Camila Quintero and Jennifer Figueroa.
