May 11, 2020

Milbank Advises Lenders on Pamplona-Cúcuta Toll Road Project

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Milbank LLP represented the lenders—including JP Morgan Chase Bank, Deutsche Bank AG, FDN (Financiera de Desarrollo Comercial), ICBC, Bank of China, ICO, MetLife, MUFG and Societe Generale—in connection with the financing for the Pamplona-Cúcuta 4G Toll Road project in Colombia. The project is being developed by Union Vial Río Pamplonita S.A.S., as the project company, and Sacyr Concesiones, as sponsor.

The 62.2 kilometer toll road project is a solution to connect the borders between Colombia and Venezuela, as well the northeast region of the country. It is intended to reduce travel times and operating costs for users, thereby guaranteeing a quicker and safer road corridor. In addition, the toll road will contribute to improving the quality of life of the region’s inhabitants. Once completed, it will connect with the 4G Bucaramanga-Pamplona road. Colombia's National Infrastructure Agency (ANI) is developing the highway under its fourth-generation highway program (4G).

The Milbank deal team was led by Global Project, Energy & Infrastructure Finance partner Carolina Walther-Meade, along with Dan Bartfeld, head of Milbank’s Project, Energy and Infrastructure Finance Group and co-head of the firm’s Latin America group, and associates Miguel Duran, Rocío Portela-Berrios and Natalia Rodriguez Pastrana.

Ms. Walther-Meade said, “We are pleased to have facilitated the financing of another major 4G Toll Road project in Colombia for our clients that will contribute to a reduction in transit times and improve the quality of life in the region.”

Dan Bartfeld added: “We are seeing very strong financing activity in transportation infrastructure matters throughout Latin America. This successful transaction highlights that multiple sources of capital are available for well-structured projects.”

Milbank’s Latin America practice has received global recognition from industry publications – particularly in the transportation infrastructure space. Milbank has previously advised on ten other 4G Toll Road financings in Colombia, including Puerta de Hierro, Pasto Rumichaca, and various award-winning projects such as Alto Magdalena Toll Road (named “Best Local Currency Financing” by LatinFinance), Conexión Norte (named “Best Road Financing” by LatinFinance), Pacífico 1 (named “Best Local Currency Financing” by LatinFinance) and Pacífico 3 (named “Best Road Financing” and “Best Infrastructure Financing – Andes” by LatinFinance, “Latam P3 Deal of the Year” by PFI and “Latin America Roads Deal of the Year” by IJGlobal).