FDN charts global support for 4G roads
Colombia’s national development bank will lend up to $800m to international banks to close financing for 10 road concessions
FDN wants increased lending from international banks to
speed up the financial close on the next 10 toll roads in
Colombia's 4G concessions program.
"Right now, nearly 50% of funding comes from Colombian
banks, but we want to reduce this to between 40% and 45%," FDN
CEO Clemente del Valle told LatinFinance in
Foreign lenders have provided 20% of 4G project financing so
far, while institutional investors have committed 22% and FDN
less than 9%. But the development bank wants international
banks to finance between 25% and 30% of project costs for the
next round of toll roads, with institutional investors and FDN
committing between 15% and 20% apiece, he said.
As del Valle explained, FDN will provide between $500m and
$800m in local currency loans to international banks, enabling
them to finance projects in Colombian pesos.
"Local banks do not have the structuring expertise in
project finance and that is why we need more participation from
international players," he said..
He also said multilateral institutions, such as the IFC,
will issue peso-denominated bonds to raise funds for 4G toll
roads. FDN is also evaluating possible bond sales in the
cross-border markets to raise 4G funding next year.
"Next year is when we really start to leverage. For now, it
is through the Isagen money," del Valle said. "We want to get
more active in the energy sector, so we could look at a green
bond or multilateral loans."
FDN received COP2.5tn
($864m) from the government in May last year, part of the
proceeds from the sale
of power generator Isagen.
The 10 projects due to reach financial close this year
involve COP15.8tn in investments, according to a presentation
ING, Itau BBA, Banco de Credito del Peru (BCP), Santander
and Canadian pension plan Caisse de depot et placement du
Quebec (CDPQ) are part of the international banking group for
2 toll road concession. The concessionaire La Pintada,
which also counts on Davivienda and Banco de Bogota for local
currency financing, has tied up a COP200bn bridge loan to carry
on with construction on the 96.5km road.
Spanish bank BBVA is structuring COP1.75tn in financing
for Ruta del
Cacao, a concessionaire led by Spanish developer Cintra,
for the Bucaramanga-Barrancabermeja-Yondo toll road, split
between an 18-year facility in inflation-linked UVRs and a
14-year loan in pesos.
banks involved in financing 4G projects include Banco
Sabadell and Santander from Spain, BNP Paribas, Natixis and
Societe Generale from France, Intesa Sanpaolo from Italy and US