BU, Cuatrecasas and CC in $2.2bn financing to Conexión Norte
Several firms have advised on the granting of a COP $2.2 billion financing to Colombia’s fourth-generation road project, the Conexión Norte highway, in its operation and maintenance stage.
Brigard Urrutia, together with Paul Hastings, advised Autopistas del Nordeste and its shareholders: Ortiz Construcciones y Proyectos, KMA Construcciones, Unidad de Infraestructura y Construcciones Asociadas, Valorcon, SP INGENIEROS, Solarte Nacional de Construcciones, COMPAÑIA ESPAÑOLA DE FINANCIACION DEL DESARROLLO COFIDES and FIEX. Cuatrecasas and Clifford Chance advised the lenders locally and internationally, respectively.
The amount was provided by Sumitomo Mitsui Banking Corporation (SMBC), Bancolombia, Financiera de Desarrollo Nacional (FDN), BlackRock, Banco de Crédito del Perú (BCP) and Allianz Capital Partners. Itaú Colombia and Sumitomo Mitsui Banking Corporation acted as financial advisors to the shareholders.
The refinancing included a U.S. dollar tranche credit facility, a Colombian peso tranche credit facility, a U.S. dollar contingent credit facility tranche, a Colombian peso contingent credit facility tranche and a Rule 4(a)2 private note issuance. The proceeds will be used to partially finance the project. The proceeds will be used to partially repay the initial financing of the Conexión Norte highway in 2016.
This project, which extends for approximately 145 kilometers, is one of the most important for Bajo Cauca Antioqueño, as it facilitates a direct connection between the southwest and the center of the country with the ports of Cartagena and Barranquilla, using Puerto Berrío as a link. Two units of the 145 km toll road began operating in January 2023 and July 2024, respectively.
The work also promises a positive impact on transportation logistics, with an estimated 25% reduction in travel times between Cartagena and Medellín, with an average speed of 80 km/h. In addition to improving connectivity between production centers located in the north and south of the country, the construction phase of the project will generate 15,000 jobs and benefit more than 740,000 inhabitants in municipalities such as Caucasia, Remedios, Segovia and Zaragoza, as it is a pioneer in fourth-generation highways.
BU’s team was led by partner Cesar Felipe Rodríguez Parra (pictured left), with support from associates Daniela Gómez Montero, María Alejandra Martínez Pastrana, Juan Felipe Silva Pupo and Isabella Torres Díaz of the Banking and Financial Services team; as well as director Mario Alejandro Forero González and associates Maria Alejandra Salamanca Vélez and David Torres from the Infrastructure and Public Services team.
Paul Hastings’ team was led partner Thomas Sines, and included partner Jamie Madell and associates Juan Martin Estrada, Maria Eduarda Miranda, and Christine Walsh.
Cuatrecasas’ team was composed of partners Manuel Quinche (pictured centre, left) and Juan Carlos Puentes (pictured centre, right), and associates Catalina Herrera, Angie Gómez, Ana Katrin García and María Verónica Hernández from the Project Finance area; as well as senior associate Diana Rueda and associate Santiago Mendoza from the Energy and Infrastructure team.
Clifford Chance’ team was led by counsel Alberto Haito (pictured right) in Washington, DC and law clerk Adriana Cabal in New York, with assistance from partner Avrohom Gelber and associate Wei Bin Tan on tax related matters and partner Darren Littlejohn and associates Andrew Des Rault and Grace Mayes on derivatives related matters.
