PPU instructed on $104 million loan for major road project in Colombia

Philippi Prietocarrizosa Ferrero DU & Uría in Colombia advised Covioriente and Corficolombiana on a syndicated bridge loan under New York law for $104 million. The companies are part of a consortium tasked with building a major road infrastructure project under the Colombian 4G concessions program. 

The closing of the bridge loan is widely considered as an important milestone for this 4G toll road concession and it highlights the success of the infrastructure program in Colombia.

The borrower is a trust set up by Concesionaria Vial del Oriente S.A.S. (Covioriente) a company controlled by Corficolombiana S.A. (Corporación Financiera Colombiana S.A., a member of Grupo Aval), and concessionaire of the Villavicencio-Yopal road infrastructure project.

Natixis New York Branch, Credit Agricole, Citibank and Banco de Sabadell Miami Branch provided the loan. These lenders retained Gómez-Pinzón Zuleta as local counsel in Colombia and Allen & Overy for NY law.

Cititrust Colombia acted as collateral agent and Citibank as administrative agent, the companies instructed Reed Smith in NY and a team at PPU in Colombia led by partner Javier Valle.

Partners Hernando Padilla and Jorge Di Terlizzi led the team at PPU which acted for the sponsors.

Milbank advised the sponsors under NY Law.

Ignacio Abella