DEAL: Colombia’s first private project finance project

Author: John Crabb | Published: 23 Jan 2018

Concesión Ruta al Mar has secured $708 million debt and equity financing for the construction, operation and maintenance of the Antioquia-Bolívar highway in Colombia. The project, sponsored by subsidiary Construcciones El Cóndor, is the first private initiative to secure international financing as part of Colombia’s ambitious 4G (fourth generation) infrastructure project.

While this is the eighth project under the 4G programme to be completed, it is the first to be so without any government guarantees, vigencias futuras, or traffic top-up payments, diferencias de recaudo, and is reliant on fees collected from tolls alone.

"This was the first of this type deal ever to be done in Colombia, and actually throughout Latin America, rarely have you seen a project financing transaction with pure traffic risk being financed in the capital markets and the loan markets in the way that this one was," said Gianluca Bacchiocchi, partner at Clifford Chance.