Holland & Knight Advises MUFG Bank in Financing of La Virginia - Nueva Esperanza Transmission Line
BOGOTÁ (August 21, 2020) – Holland & Knight acted as legal advisor under Colombian law for MUFG Bank, Ltd. (MUFG) on its US$163.5 million financing for the La Virginia - Nueva Esperanza transmission line project. MUFG acted as coordinating lead arranger, administrative agent, offshore collateral agent and hedge provider on the transaction, which closed on August 11.
MUFG is Japan's largest bank. This transaction represents the first project financing of a transmission line in Colombia involving foreign banks.
The transmission line, which will be built and operated by Transmisora Colombiana de Energía S.A. E.S.P - TCE, a subsidiary of Alupar Colombia S.A.S, is 235km long, runs at 500kV and includes the construction of two connection bays. The project will cross the departments of Risaralda, Cundinamarca, Tolima, Quindío and Valle del Cauca in Colombia and benefit more than 2 million homes.
Holland & Knight's representation of MUFG was led by Partner Lucas Saffon-López, who was assisted by Senior Counsel Juliana Saa and Associates María Alejandra Cabrera and Rafael Marulanda.
"We are very pleased with the result of this transaction, which was almost entirely negotiated virtually due to the pandemic," said Mr. Saffon-López. "This shows that we are able to successfully face the current situation and continue working this way for as long as necessary."