Nine firms drive first 4G finance in Colombia

Milbank, Tweed, Hadley & McCloy LLP in New York, Castro Leiva Rendón Criales Abogados in Bogotá and Londoño & Arango in Medellín have helped the consortium behind the Pacífico 3 motorway in central Colombia become the first concessionaire to obtain finance under the country’s multibillion-dollar fourth generation (4G) infrastructure programme.

Pacífico 3, comprised of Construcciones El Condor, MHC Ingenierías and Constructora Meco, relied on the three firms to issue one batch of dollar-denominated notes worth US$260 million and another in local currency worth some 396 billion pesos (US$125 million). It also sought their counsel to obtain a four-tranche loan denominated in Colombian tender worth a combined 903 billion (US$285 million).

Goldman Sachs, which hired Clifford Chance LLP in New York, Philippi Prietocarrizosa Ferrero DU & Uría (Colombia) and BLP (Costa Rica), arranged and structured the entire credit package, while Colombian infrastructure fund Financiera de Desarrollo Nacional served as a credit enhancement agent, turning to Holland & Knight LLP’s Miami and Bogotá offices. Sullivan & Cromwell LLP in New York and Washington, DC advised Fiducolombia as trustee. Citibank, acting as collateral agent, turned to Philippi Prietocarrizosa in Bogotá. Reed Smith LLP in New York is also thought to have advised Citibank, but this could not be confirmed prior to publication.

The consortium will use the funds to build a 146-kilometre motorway in Colombia’s interior. Colombian President Juan Manuel Santos said the financial package was a sign of confidence in the government’s 4G infrastructure scheme, drawing particular attention to the dollar-denominated offering, which is the first foreign project bond obtained by a Colombian toll road. The transaction closed on 22 February.

Counsel to Pacífico 3, Construcciones El Condor, MHC Ingenierías and Constructora Meco

Milbank, Tweed, Hadley & McCloy LLP

Partners Carlos Albarracín, Carolina Walther-Meade, Andrew Walker and Joel Krasnow, counsel Catherine Leef Martin, associates Donald Canavaggio, Alex Barlow, Richard Hillman, Jaime Ramírez and Andrés Arnaldos Montaner, and international associates Anacandy Perusquia and Maria Camila Quintero in New York

Castro Leiva Rendón Criales Abogados

Partners Marcela Castro, Jose Ignacio Leiva, Mario Criales and Carlos Padilla, and associates Carlos Hernandez and Paola Mondragon in Bogotá

Londoño & Arango

Partner Maximiliano Londoño in Medellín

Counsel to Goldman Sachs

Clifford Chance LLP

Partners Gianluca Bacchiocchi, Jon Zonis and Charles Adams, and associates Guido Liniado, Luis Maria Clouet, Regina Madrid, Alejandro Espitia and Mariana Estévez in New York

Philippi Prietocarrizosa Ferrero DU & Uría (Colombia)

Partners Juan Fernando Gaviria and Jorge Di Terlizzi, and associates Carolina Duque, Cristina Diaz, Maria De Bedout, Maria José Ariza, Andrea Castillo, Paola Vasquez, Paula Buritica, Margarita Lorduy Erika Serrano, Diego Velandia, Ana María Sanchez, Mauricio Nieto and Roberto Camacho in Bogotá

BLP (Costa Rica)

Counsel to Financiera de Desarrollo Nacional

Holland & Knight LLP

Partner Norberto Quintana and foreign visiting attorney Mariana Guzian in Miami

Holland & Knight (Colombia)

Partner Enrique Gómez-Pinzón and associates Lucas Saffon and Maria Juliana Saa in Bogotá

Counsel to Citibank

Philippi Prietocarrizosa Ferrero DU & Uría (Colombia)

Partner Javier Valle and associate Nicolas Tirado in Bogotá

Counsel to Fiducolombia

Sullivan & Cromwell LLP

Partner Robert Risoleo in Washington, DC and associate Miguel Oría in New York

This article was updated on 24 May 2016 to include BLP’s counsel to Goldman Sachs.


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