Colombian infrastructure: Crédit Agricole CIB confirms its commitment with the financing of the Rumichaca-Pasto road project

Colombia’s Fourth Generation Toll Road Project, Rumichaca-Pasto., sponsored by the Spanish group Sacyr, was granted a non-recourse financing of approximately COP 3.1 trillion (USD 798 million equivalent) to repay the existing financing that was provided by DFC and a syndicate of commercial banks, including Crédit Agricole CIB.

The 83-km toll road, located in the department of Nariño, is part of the Pan-American Highway and national highway 25, an international hub linking Colombia with Ecuador, therefore is also a key axis for development in the south. As part of the Fourth Generation Colombian Toll Road, Rumichaca-Pasto benefits from a unique framework that fully mitigates any traffic risks over the life of the project.

The financing was structured as a multi-currency loan / bond hybrid format mirroring the asset’s long-term revenue profile. The 144A/RegS Notes achieved a “BB+” and “Baa3” rating (each on the global scale) by Fitch and Moody’s, respectively. The transaction, which is closing months ahead of the project completion, was well received by the market and attracted a diverse group of reputable international and local creditors evidencing the market confidence in Sacyr and its Ecuadorian partner’s ability to deliver the project on schedule.

Crédit Agricole CIB participated in the transaction as Mandated Lead Arranger, Issuing Bank and Hedge Provider, thereby reconfirming the Bank’s leadership in the Colombian infrastructure sector and demonstrating continued support to its clients.

This transaction adds to Crédit Agricole CIB’s now active presence and consolidated track-record in the Colombian infrastructure sector (Rio Magdalena 2 long-term financing, Via40 bridge facility Will open in a new tab , among others) and will certainly assists in future opportunities arising from the strong pipeline with top level international sponsors (IFM /Aleatica, Strabag and Vinci).

“The closing of Rumichaca Pasto continues to demonstrate Crédit Agricole CIB's leadership and commitment in financing transportation infrastructure projects for our clients across the globe. Congratulations to all the teams involved on closing this strategically important and complex transaction for one of the bank’s key clients in a rapidly growing Colombian infrastructure market.”

Matthew Norman, Global Head of Infrastructure

“This complex non-recourse refinancing evidences once again Crédit Agricole CIB's technical capabilities across products and solid track-record in Colombia’s infrastructure sector put at the service of the needs of our strategic clients.”

Dorothée Peuzé, Head of Project Finance Latin America

"We are very proud to announce to the market the financial closing of this transaction. When we opened our representation office in Colombia (April 2018), this was the first project financing that we closed in Colombia and now that the construction phase is ending we are part of the refinancing of this project. So Crédit Agricole CIB has been part of the whole financing cycle in toll roads in Colombia, this shows the confidence of our Bank in Colombia and its toll road program.”

Juan Carlos Alvarez, Representative for Crédit Agricole CIB Colombia