Colombia
Cuatrecasas advises on closing financing agreement for Colombia’s Puerto Salgar–Barrancabermeja and Sabana de Torres–Curumaní highways
May 27, 2024
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SubscribeCuatrecasas has advised KMA Construcciones S.A.S., Ortiz Construcciones y Proyectos S.A., and concessionaires Autopista Magdalena Medio S.A.S. y Autopista del Río Grande S.A.S. on closing the financing agreement with a syndicate of eight banks for the construction of the Puerto Salgar–Barrancabermeja and Sabana de Torres–Curumaní highways in Colombia.
The transaction was a milestone, enabling the concessionaires to secure financing for up to COP 2.3 billion and COP 2 billion, respectively, to build these two infrastructure projects that are essential to connect the interior of the country to the Caribbean Coast. A total sum of COP 4.91 billion and COP 4.75 billion, respectively, had been invested in developing the projects by December 2023.
Besides contributing to the country’s connectivity and development, the projects will benefit about 800,000 inhabitants in the departments of Santander, Norte de Santander, Cesar, Cundinamarca and Boyacá.
This infrastructure work will also promote job creation, since it is estimated that over 100,000 direct, indirect and induced jobs will be involved.
The financing was provided by a syndicate of local, international and multilateral banks, made up of Bancolombia, CAF, FDN, IDB Invest, IFC, JPMorgan, MUFG and SMBC.
“We congratulate our clients Grupo Ortiz, KMA Construcciones, Autopista Magdalena Medio and Autopista del Río Grande on achieving this milestone that is crucial for the projects and, generally speaking, for the country’s infrastructure. Once again, local and international sponsors, commercial banks, and multilateral agencies have committed to our country’s development by investing in infrastructure projects,” remarked Manuel Quinche, managing partner of the Cuatrecasas Bogotá office.
Partner Natalia Arango said: "This infrastructure project implementation will directly benefit over 360,000 inhabitants and generate direct and indirect jobs in Colombia. Cuatrecasas is proud to have contributed to the building of roads that connect regions and foster the country’s social and economic progress.”
The legal advisory team was made up of lawyers Manuel Quinche, Natalia Arango, María Esther Eljach, María Mónica Latorre, Diana Rueda, Alejandro Ruiz, Diego Alejandro Torres, Oswaldo Pacheco , Marcos Díaz, Manuela Gaitán, Juan Carlos Camacho y Mariana González
May 27, 2024
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