Energy, gas, water and telecom provider in Colombia and other countries in Central and South America will use proceeds to develop 2400-MW Ituango hydropower facility in northwest Colombia
Continuing its run advising on large energy financings in Latin America, Milbank, Tweed, Hadley & McCloy LLP has advised integrated Colombian power, gas, water and telecom company Empresas Públicas de Medellín E.S.P. (EPM) in securing a US$1 billion loan from a consortium of international banks.
EPM provides electricity, natural gas and water services in Colombia and throughout Central and South America. Proceeds from the loan are expected to fund 2016 investment expenses, including EPM’s planned development of the Ituango hydroelectric plant. Located on the Cauca River, which flows through northwestern Colombia, the facility will upon completion be the country’s largest hydroelectric facility, capable of generating 2,400 megawatts.
Loan underwriters include Bank of America, N.A.; HSBC Securities (USA) Inc.; Bank of Tokyo-Mitsubishi UFJ, Ltd.; Sumitomo Mitsui Banking Corp.; Citigroup Global Markets, Inc.; JP Morgan Securities LLC; and Mizuho Bank, Ltd.
Milbank Global Securities partner Carlos Albarracín led the transaction, which closed on January 7. Assisting Mr. Albarracín on the matter was New York-based Global Project Finance associate Jaime Ramirez and international attorney Camila Quintero.
“We are pleased to have represented EPM in this important financing, for a project that has been years in the planning and is expected to provide approximately 15% of Colombia’s energy needs as well as extensive employment opportunities,” Mr. Albarracín said. “Corporate, project finance and capital markets deal activity across many sectors of Colombia’s economy, which had one of the strongest growth rates in Latin America in 2015, has been extremely active and we expect that trend to continue.”
Six Milbank transactions from the past year, including three in the Americas, were recently recognized at Project Finance International’s 2015 annual awards.
