Financiera de Desarrollo Nacional (FDN)

Uraba Port - DFI/MFI payment guarantee

Industry
Other/Financial Services
Area of finance
Development Bank Finance
Region
Latin America
Countries
Colombia

Deal Overview

MIGA has issued a guarantee to J.P. Morgan covering a $103.7 million loan facility to Financiera de Desarrollo Nacional (FDN) for a period of up to 15 years. FDN, created by the government of Colombia to promote infrastructure projects, will provide debt financing to Sociedad Portuaria for the...

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MIGA has issued a guarantee to J.P. Morgan covering a $103.7 million loan facility to Financiera de Desarrollo Nacional (FDN) for a period of up to 15 years. 

FDN, created by the government of Colombia to promote infrastructure projects, will provide debt financing to Sociedad Portuaria for the construction and operation of a new, privately managed port in the Gulf of Uraba in the northern part of Antioquia, Colombia.

When the port is completed, at an estimated cost of $672 million, it will become the main outlet for banana and agricultural exports from Uraba. In addition, given the port’s location and expected savings in transportation costs for exporters, it is anticipated that the port will handle a major portion of cargo from Medellin, Bogota, and their surrounding areas.  

J.P. Morgan, as a guarantee holder, is protected against the losses that would result from FDN’s failure to make a payment under the Non-Honoring of Financial Obligation by a State-Owned Enterprise coverage offered by MIGA. The guarantee is vital at a time when financing costs for the Latin America and Caribbean region have sharply increased and liquidity has become scarce.

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Deal Volume
$ 103.7m
Financial Close
01 March 2022
Sources

All Dealmakers

Tranches


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