Holland & Knight guides first foreign financing of Colombia transmission line

Holland & Knight has acted as legal adviser to MUFG Bank on its $163.5 million financing of a transmission line project in Colombia

MUFG acted as coordinating lead arranger, administrative agent, offshore collateral agent and hedge provider on the transaction, and which will finance the construction of the La Virginia-Nueva Esperanza transmission line.

This is the first project financing of a transmission line in Colombia involving a foreign bank.

MUFG is Japan’s largest bank. 

The transmission line, which will be built and operated by Transmisora Colombiana de Energía (TCE), a subsidiary of Alupar Colombia, will run for 235km with a capacity of 500kV, crossing the departments of Risaralda, Cundinamarca, Tolima, Quindío and Valle del Cauca, benefiting more than two million households.

The project includes the construction of two connection bays. 

Holland & Knight’s representation of MUFG was led by partner Lucas Saffon-López (pictured), who was assisted by senior counsel Juliana Saa and associates María Alejandra Cabrera and Rafael Marulanda.

“We are very pleased with the result of this transaction, which was almost entirely negotiated virtually due to the pandemic,” Saffon-López said.

“This shows that we are able to successfully face the current situation and continue working this way for as long as necessary.”