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.