Financial closure of Ibagué–Honda–Cambao–Manizales highway project in Colombia

Cuatrecasas advises Bancolombia and infrastructure fund Fondo de Deuda Sénior para Infraestructura en Colombia CAF-AM Ashmore I

Financial closure of Ibagué–Honda–Cambao–Manizales highway project in Colombia
November 29, 2021

Cuatrecasas has advised Bancolombia and infrastructure fund Fondo de Deuda Sénior para Infraestructura en Colombia CAF-AM Ashmore I on the COP 458 billion financing granted to Concesionaria Alternativas Viales. This financial closure guarantees the investment required for the Ibagué–Honda–Cambao–Manizales highway, which is included in the Colombian government’s 4G infrastructure projects.

Bancolombia participated in the deal with a short-term tranche of COP 165,3 billion and an inflation-linked tranche (CIP) of COP 116,7 billion, and the Fondo de Deuda Sénior para Infraestructura en Colombia CAF-AM Ashmore I joined the financing with a real-value unit (UVR) tranche of COP 176 billion.

Lawyers from the Cuatrecasas Bogotá office Manuel Quinche, Natalia Serrano and Laura Toro advised on this deal, which includes multiple jurisdictions (Colombian and Portuguese law). The project received international backing from Portuguese industrial conglomerate Mota-Engil and local support from Coherpa-Icein.

The 256 km road project connects the Colombian departments of Cundinamarca, Tolima and Caldas, making it a strategic link between the inland regions and the country’s coffee belt, which will boost tourism in north Tolima and Los Nevados National Park.

The Ibagué–Honda–Cambao–Manizales highway project is currently under construction; 43.55% of the work has been completed, with actions on 42 work fronts, creating 1,270 direct and indirect jobs.

November 29, 2021