Holland & Knight Advises on COP$4.3 Billion Financing for Troncales del Magdalena Toll Road Projects in Colombia
BOGOTÁ (April 9, 2024) – Holland & Knight advised eight financial institutions, including Bancolombia, Corporación Financiera Internacional (IFC), BID Invest, Banco de Desarrollo de América Latina y el Caribe (CAF), J.P. Morgan Securities PLC, Sumitomo Mitsui Banking Corporation (SMBC), Mitsubishi UFJ Financial Group (MUFG) and Financiera de Desarrollo Nacional (FDN), in the financing of the fifth generation (5G) of highways Autopista Magdalena Medio (Troncal del Magdalena 1) and Autopista del Rio Grande (Troncal del Magdalena 2). The financial closing of 2.3 billion Colombian pesos for the Autopista Magdalena Medio and 2 billion for the Autopista del Rio Grande, which are being developed by KMA Construcciones and Grupo Ortiz, was announced on April 8.
The Autopista Magdalena Medio highway, with a total investment of 4.4 billion Colombian pesos (approximately US$1.2 million), will extend 260 kilometers from Puerto Salgar to Barrancabermeja, passing through the departments of Cundinamarca, Boyacá and Santander. The Autopista del Rio Grande highway, with an overall investment of 4 billion Colombian pesos (approximately US$1 million), will extend 272 kilometers between Barrancabermeja and Curumaní, crossing the departments of Santander and Cesar.
The construction of both highways will connect the main cities in the interior of Colombia with Caribbean ports. These projects have the potential to generate up to 100,000 direct and indirect jobs during their construction phase. Additionally, these new roads will reduce travel time by approximately two hours along the corridor, with an average speed of 100 kilometers per hour, which is expected to boost the country's competitiveness.
The eight lenders were represented by Holland & Knight under Colombian law by Partner Maria Juliana Saa and Associate María Elvira Borrero, who led the Bogotá-based team of attorneys.
"The highways are a milestone for Colombia, demonstrating the confidence of national, international and multilateral banks in the country's infrastructure," said Ms. Saa. "Undoubtedly, a transaction that becomes a milestone in the financing of projects in the region contributes to the positioning of Holland & Knight in the market."