Mendoza assists AFD in €180m loan to EPM
Mendoza Abogados has assisted the French Development Agency (AFD, Agence Française de Développement) in the granting of a loan to Empresas Públicas de Medellín (EPM) for a value of €180,000,000.
Thanks to this loan, signed on 16 March 2023, EPM will use the funds to finance its Investment Plan, mainly in the Water, Sanitation and Energy segments. Mosquera Abogados acted as counsel to EPM.
As this is an external public credit operation, it had the favourable concept of the National Planning Department and the authorisation of the Ministry of Finance and Public Credit. The closing of the transaction is subject to the fulfilment of various obligations common to this type of operation.
This transaction began negotiations in November 2021, but according to María Lucía Amador, director of Mendoza’s Infrastructure, Transport and Financing area, “due to the constant changes in the financial market, the volatility of interest rates and the change of government, there were several periods of suspension, which finally allowed both parties to reach comfortable scenarios that responded to their needs. This involved a constant process of negotiation with the Ministry of Finance and Public Credit, and due to the passage of time required a rigorous analysis of the validity and validity of the DNP concepts required to obtain the Ministry’s authorisation”.
With the proceeds of this loan, EPM will be investing in its clean water programme, in photovoltaic power generation projects, in improving energy efficiency in transmission and distribution networks, in the decontamination of the Medellín river, and in rural electrification and public lighting, among others. Thus, this transaction has a high social impact, as it seeks to transform and improve the lives of communities through the efficient provision of public services, territorial development and environmental care.
Mendoza’s advice involved the negotiation of the loan agreement with EPM and the processes necessary to obtain the necessary authorisations from the Ministry of Finance and Public Credit.
Inés Labidi acted as in-house counsel for AFD.
Mosquera Abogados’ team included partner Juan Pablo Mosquera and associate Gabriela Naranjo.
Mendoza’s team consisted of director María Lucía Amador (pictured left) and associate María Esther Eljach (pictured right).
