Fideicomiso P.A. Alto Magdalena

Honda – Puerto Salgar – Girardot Corridor PPP - Refinancing

Industry
Infrastructure/Road
Area of finance
Project & Infrastructure Finance
Country
Colombia

Deal Overview

The project consists of the construction, rehabilitation, improvement and operation of the existing Honda – Puerto Salgar – Girardot corridor. The construction phase of the project included the improvement of ~167km of existing toll roads as well as ~23km of new construction. The Honda...

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The project consists of the construction, rehabilitation, improvement and operation of the existing Honda – Puerto Salgar – Girardot corridor. The construction phase of the project included the improvement of ~167km of existing toll roads as well as ~23km of new construction. The Honda – Puerto Salgar – Girardot concession was the first project to be awarded under the 4G Program, the largest infrastructure initiative in Colombian history. 

The initial road was initially constructed with a $314 million (USD equivalent) financing consisting of three tranches of debt: a COP tranche, a UVR indexed tranche and USD tranche provided by Grupo Aval banks and Cabei, respectively. Given the Project has reached completion, the Sponsors came to all existing lenders, with MUFG acting as a MLA for the USD tranche, to refinance the Project’s debt. 

While the project will receive most of its revenue from toll revenues, the project benefits from a Toll-Revenue guarantee. The Concession Agreement guarantees a minimum level of revenue that is equivalent to USD 1,335MM to be paid out at predetermined intervals in order to ensure that debt is fully repaid. Further, robust cash sweeps have been granted to lenders to improved credit.

MUFG Bank views Project Alma as a landmark transaction, as this was the first 4G toll road in Colombia. This refinancing marks a successful completion of the project and will act as a precedent for future bank support on similar projects.

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Deal Volume
$ 514.69m
Financial Close
18 December 2020
Sources
Submitted by participant(s), Press release, Proximo article

All Dealmakers

Makela Hughes

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Tranches


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Projects

Honda – Puerto Salgar – Girardot Corridor PPP

Greenfield
Road
Colombia
$ 557m