Milbank represented Concesión Pacífico Tres on the first debt financing tied to 4G toll road concession plan by Colombian National Infrastructure Agency
Pacífico Tres is an entity created in 2014 as part of a 25-year concession with Colombia’s Ministry of Transportation to rehabilitate and operate a series of highways linking three of the country’s most commercially important regions – Valle del Cauca, Antioquia and Eje Cafetero – with the port of Buenaventura on the Pacific coast.
Milbank advised the concessionaire Concesión Pacífico Tres and its sponsors, MHC Ingeniería y Construcción de Obras Civiles, Construcciones El Cóndor, and Costa Rica’s infrastructure company Constructora MECO, in the structuring of a dual-currency project bond and financing package.
The offering is the first debt financing of its kind tied to a toll-road concession infrastructure plan of the Colombian National Infrastructure Agency. In the first part of the offering, Pacífico Tres issued a tranche of $260.4 million of Series A notes due 2035, yielding 8.250%. In the second portion, the company issued COP$397 billion of Series B UVR-indexed notes due 2035, yielding 7.000%.
Partners Carlos Albarracín and Carolina Walther-Meade led the Milbank team which also included partners Andrew Walker and Joel Krasnow.
Colombian infrastructure development bank Financiera de Desarrollo Nacional served as a credit enhancement provider for the deal and instructed Holland & Knight in Miami and Bogotá