August 16, 2019

Milbank Advises Lenders on Rumichaca-Pasto Toll Road Project


Milbank LLP represented the lenders, including the Overseas Private Investment Corporation, in connection with the financing for the Rumichaca-Pasto 4G Toll Road Project in Colombia, arranged by JP Morgan and Santander. The project is being developed by Concesionaria Vial Union del Sur S.A.S., as the project company, and Sacyr Concesiones Colombia S.A.S. and Herdoiza Crespo Construcciones Colombia S.A.S., as sponsors. 

The 83 kilometer toll road stretches from the city of Pasto in southern Colombia to Ipiales in western Colombia on the border of Ecuador. Colombia's National Infrastructure Agency (ANI) is developing the highway under the second wave of its USD25 billion fourth generation of 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, along with associates Rebecca Francus and Anya Andreeva.

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 an increase in safety of passage between Colombia and Ecuador.”

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 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).