Financial close reached for road PPP in Colombia
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Colombia's National Infrastructure Agency (ANI) has announced financial closure for the Connection North highway concession.
The debt package include a 40 per cent financing in Colombian Pesos (COP) provided by Bancolombia, Davivienda and Financiera de Desarrollo Nacional (FDN) and a 60 per cent US$ denominated debt package provided by Sumitomo Mitsui Banking Corporation (SMBC), Banco de Credito del Peru, "Instituto de Crédito Oficial" - ICO (Spain) and Korea Development Bank (KDB). SMBC led the dollar component of the closure, equivalent to US$250, and distributed debt among the other actors.
The total project investment is estimated at COP1,300 billion (US$418 million).
The project was awarded in October 2015 to the consortium Autopistas del Nordeste SPV, which is composed of Colombia's KMA Construcciones Colombia (25%), Spain's Ortiz Construcciones y Proyectos (25%), Colombia's Equipo Universal S.A (25%), and Colombia's Valores y Contratos S.A. (25%).
The 145 km road project will link Remedios and Caucasia. The project involves, among others, the development of a 490m tunnel, the Caucasia bypass and 96 bridges.
The project is part of the nine concessions that comprise Autopistas para la Prosperidad highway project. Total investments will exceed 13 trillion pesos and will feature contributions from the national government through the ANI, the Government of Antioquia and the Government of Medellín.
These road concessions will allow Colombia's Atlantic Coast and Antioquia to connect efficiently with the "Eje Cafetero" and the Cauca valley, decreasing in 7 hours the travel distance between Medellin and Buenaventura port.
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Colombia's ANI announces FC for two projects
The concessionaire of the Cartagena-Barranquilla and Prosperidad bypass project issued bonds with a value of US$263 million. Goldman Sachs acted as bond arranger in the transaction. The total project financing raised now stands at US$499 million.
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Brookfield closes $14 Billion Global Infrastructure Fund
Brookfield Asset Management Inc. has announced that it held the final close on Brookfield Infrastructure Fund III (BIF III) with an aggregate of US$14 billion of equity commitments, creating a global infrastructure fund that invests in high-quality, core infrastructure assets on a value basis. BIF III marks the largest private fund raised by Brookfield and the largest private infrastructure fund ever raised in the industry. In the last 18 months, Brookfield has raised approximately US$27 billion across its flagship private fund strategies, including the close of its flagship real estate fund, Brookfield Strategic Real Estate Partners II at US$9 billion, and its flagship private equity fund, Brookfield Capital Partners IV at US$4 billion. All three funds surpassed their fundraising targets. Total capital commitments of BIF III exceed the original US$10 billion fundraising target, reflecting a robust investment pipeline and strong investor demand for the asset class. BIF III’s predecessor fund closed in 2013 with US$7 billion of total capital commitments. Investors in the Fund are a diverse group of over 120 institutional investors, including public and private pension plans, sovereign wealth funds, financial institutions, endowments and foundations and family offices. Brookfield committed US$4 billion to the Fund, ensuring alignment of interests with other Fund investors. Brookfield’s commitment will be funded through Brookfield Infrastructure Partners L.P. and Brookfield Renewable Partners L.P. To date, the Fund has committed to invest over US$3 billion in assets consistent with the Fund’s investment strategy, including a portfolio of U.S. hydroelectric facilities, a portfolio of Brazilian electricity transmission projects, a leading Colombian power generation company, a portfolio of Peruvian toll roads and a U.S. water infrastructure project developer. Read more
