Clifford Chance

Clifford Chance advises on the financing of Colombia's Conexión Norte Toll Road Project

Leading international law firm Clifford Chance has acted as New York counsel to senior lenders Sumitomo Mitsui Banking Corporation, The Korea Development Bank, Banco de Crédito del Perú, Instituto de Crédito Oficial, Financiera de Desarrollo Nacional S.A., Banco Davivienda S.A. and Bancolombia S.A. in connection with the approximately US$445 million multi-source and multi-currency financing of the Conexión Norte 4G toll road in Colombia that closed on July 28, 2016. Sumitomo Mitsui Banking Corporation acted as Sole Lead Arranger and Bookrunner for the dollar senior loan facility; it also acted as Mandated Lead Arranger and Structuring Bank for both senior loan facilities and as Hedge Coordinator.

The Conexión Norte project, a 145 kilometer toll road which will run from Remedios to Caucasia in the Antioquia region of Colombia, is being developed by special purpose company Autopistas del Nordeste SAS, which is owned jointly by Ortiz Construcciones y Proyectos SA, Valores y Contratos SA, Unidad de Infraestructura y Construcciones Asociados SAS, Solarte Nacional de Construcciones SAS, KMA Construcciones SA, and SP Ingenieros SAS.

Conexión Norte is among the first wave of projects embarked upon under the auspices of Colombia's 4G highway infrastructure program. The 4G program seeks to modernize Colombia’s highway system by improving existing roadways and constructing approximately 7,000 kilometers of new roads. The 4G program is expected to attract approximately US$25 billion of investment in Colombia's highway infrastructure. The Conexión Norte financing includes a US$250 million senior loan facility and a COP$520 billion senior loan facility, together with a COP$80 billion subordinated multipurpose revolving loan facility provided by Colombian state development bank Financiera de Desarrollo Nacional.

The Clifford Chance team in Washington, DC was led by partner Fabricio Longhin and included associates Alberto Haito, Jessica Springsteen and Lauran Smith.

Clifford Chance has wide-ranging experience advising on toll road transactions in Latin America, and the firm is uniquely experienced in guiding clients through the various financing structures and regulatory frameworks involved in long-term concessions in Latin America. Clifford Chance has been at the forefront of the Colombian 4G program, having acted in more 4G project financings—including the Pacifico Tres, Costera, Perimetral and Alto Magdalena toll road projects—than any other international law firm.

Clifford Chance finished 2015 ranked No. 1 in the Latin America project finance league table for both deal volume and deal value, and its Project Finance practice is ranked Band 1 by Chambers Latin America. Additionally, the firm was named the best Latin America Law Firm in 2015 by IJGlobal and was awarded Project Finance Team of the Year by IFLR and Latin America Law Firm of the Year by PFI Infrastructure Investor.