Holland & Knight Advises on Landmark Financing for Colombia's Rumichaca-Pasto Toll Road
BOGOTÁ (March 10, 2022) – Holland & Knight represented FCP Deuda Infraestructura II Sura-Credicorp Capital, a private equity fund managed by Unión para la Infraestructura (UPI), as the liquidity lender on the Rumichaca-Pasto toll road project financing led by Concesionaria Vial Unión del Sur S.A.S. and its Spanish sponsor Sacyr Concesiones S.L. The deal closed on Feb. 10, 2022.
The funds for the US$906 million financing were raised through a combination of a social bond issuance and three loans, making it the country's largest-ever 4G toll road financing. The concessionaire first raised 1 billion Colombian pesos (US$262 million) in a social bond issuance. The notes carry a 6.6 percent interest rate and are due in 2041. Goldman Sachs and JP Morgan acted as bookrunners and initial purchasers, and IDB Invest served as the anchor investor.
Concesionaria Vial Unión del Sur S.A.S. also obtained a US$305 million international dual-tranche loan and letter of credit facility as well as a 1 billion peso (US$260 million) local loan and letter of credit. Finally, FCP Deuda Infraestructura II Sura-Credicorp Capital, as liquidity lender, provided a revolving credit facility worth 326 billion pesos (US$79 million).
Not only is the financing the largest ever for a 4G project, but it's also the first to include a project-level letter of credit facility for a local project and the first local currency project bond investment by IDB Invest, a member of the Inter-American Development Bank Group.
When completed, the Rumichaca-Pasto toll road will stretch for 83 kilometers near Colombia's border with Ecuador.
The Holland & Knight team advising Credicorp Capital was led by Partners Norberto Quintana, Maria Juliana Saa and Lucas Saffon-López. They were assisted by Associates Alex Weaver and Alberto Vergara.