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SubscribeCuatrecasas advised Concesionaria Ruta Bogotá Norte S.A.S. on structuring and closing COP 1.2 trillion syndicated financing, granted by MUFG Bank Ltd., JP Morgan Securities PLC and Financiera de Desarrollo Nacional S.A. (FDN), to be used for the expansion works on the Autopista Norte highway in Bogotá. It also advised TMF Colombia Ltda. in its capacity as local security agent and calculation agent for the financing of this road concession.
The Accesos Norte Fase II project involves work on 17.96 kilometers of this strategic road corridor for connectivity between Bogotá and the municipalities in northern Cundinamarca. This will involve extending and improving Autopista Norte between streets 191 and 245, building two new mixed-traffic lanes in each direction, improving existing lanes, works on Carrera Séptima and the Sopó perimeter road, an exclusive carriageway for the Transmilenio bus rapid transit system with passing lanes at the planned new stations, as well as new infrastructure for pedestrians and cyclists.
Manuel Quinche, managing partner of the Cuatrecasas Bogotá office, commented on the transaction: “We are very proud to have worked on these major works that Bogotá and Colombia deserve, implemented through projects that transform regions and connect opportunities. Closure of this financing marks a milestone for infrastructure development in Colombia, as it supports a project under the Quinta Generación (5G) program that was structured as a public-private partnership (PPP).”
Regulatory challenges
This transaction stands out for its high degree of sophistication, involving the structuring and closing of syndicated financing for a 5G infrastructure project with the participation of several local and international financial institutions subject to different credit, regulatory and contractual requirements, as well as licensing and permitting procedures. The transaction required the design and negotiation of a financing structure that reconciled those requirements, while also addressing the specific regulatory challenges arising from the nature and characteristics of the project.
Natalia Arango, Cuatrecasas Finance partner, said: “We congratulate Concesionaria Ruta Bogotá Norte on this highly significant milestone for mobility in the city and its catchment area. The coordination between the lenders, advisors and other parties involved, together with the implementation of innovative legal solutions to overcome those challenges and ensure the project’s bankability were key to successfully reaching financial close. Once again, it is clear how important collaboration is between the public and private sectors to develop strategic infrastructure.”
The Cuatrecasas advisory teams were led by partners Manuel Quinche, Natalia Arango and Juan Carlos Puentes, with the participation of lawyers Camila Orrego, María Alejandra Martínez, Pablo Amorocho, Valentina Bocanegra, Isabel Ocampo and Valeria Pombo (Finance) and Alejandro Manrique (Corporate M&A).
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