Milbank LLP represented Grupo Energía Bogotá, a leading Colombian integrated gas and power company, and its controlling shareholder the District of Bogota in connection with the COP $1.925 billion (approximately US$669 million) global Rule 144A secondary offering of common stock.
Grupo Energía Bogotá issued 953,714,705 shares of common stock of by its controlling shareholder, Bogotá Distrito Capital (the “Selling Shareholder”) at a price of COP$2,018 per share of common stock. In the first phase of the process, which closed on April 5, 2018, the shares of common stock were offered solely to a limited number of eligible investors, such as current and former Company employees, pension funds and other entities which make up the “solidarity sector” (sector solidario). In the second phase of the offering, 953,714,705 shares of common stock were offered through a global offering, which consisted of (i) an international offering of 73,802,653 shares of common stock in the United States, and (ii) a public offering of 879,912,052 shares of common stock to investors in Colombia which commenced on July 4, 2018.
The Milbank deal team was led by Global Capital Markets partner Carlos Albarracín, along with associates Donald Canavaggio, Rocio Portela-Berrios, Gonzalo Guitart and James Cleary.
Mr. Albarracín said: “Milbank is pleased to have represented Grupo Energía de Bogotá, which plays a major role in Colombia’s thriving economy, and the District of Bogota on such an important transaction in the energy sector. This is the first dual-track secondary equity offering by a Colombia state-owned company which we hope will pave the way for similar capital raising transactions by other Colombian state-owned companies.”
Milbank continues to have a strong presence in Colombia and a deep client base in the country. Milbank recently represented the initial purchasers in the COP$2.3 trillion (approximately US$750 million) Colombian Peso-denominated Rule 144A senior notes offering by Empresas Públicas de Medellín, the lenders in connection with a financing provided to Brookfield to fund the acquisition of a controlling interest in Gas Natural S.A. ESP, the second largest gas distribution network in Colombia, and the lenders in Canadian private equity group Brookfield Asset Management's 1.8 billion peso (US$600 million) acquisition of a stake in Colombian power company Isagen from state-owned companies Empresa de Energía de Bogotá and Empresas Públicas de Medellín.
