Clifford Chance advises on Project Autopista Rio Magdalena 2, Colombia's latest 4G toll road financing
July 6, 2021
- Fabricio Longhin (He/Him), Alejandro Leon, José Guardo, Ignacio Díaz, Pablo Cancelo, Paul Koppel, Avrohom Gelber, , , Thomas Koh (He/Him), , Megan Gordon, Catherine Ennis (She/Her)
- Washington D.C., New York, Madrid
Clifford Chance advises on Project Autopista Rio Magdalena 2, Colombia's latest 4G toll road financing
Washington, DC: Leading international law firm Clifford Chance has advised Banco Santander, S.A., Sumitomo Mitsui Banking Corporation, Crédit Agricole Corporate and Investment Bank, Instituto de Crédito Oficial E.P.E., Banco de Crédito del Perú and Siemens Financial Services, Inc. as international lenders, and Banco Santander, S.A., Crédit Agricole Corporate and Investment Bank, Sumitomo Mitsui Banking Corporation, New York Branch, and Goldman Sachs Bank USA, as hedge providers in connection with the dollar tranche and the interest and currency derivatives entered into for the multi-tranche financing of the project for the construction of the Fourth Generation (4G) toll road Rio Magdalena 2 project in Colombia, which closed on June 28, 2021. Clifford Chance also advised Banco Santander as bridge lender in the US$80 million bridge financing for the construction of the project that closed in August 2020.
The Río Magdalena 2 project is a 25-year concession which involves the repair, construction, improvement and operation of the 153km corridor connecting Medellín with Santander. The financing is made up of three tranches, and is the first 4G financing to include a combination of UVR-indexed notes, USD-denominated loans, COP-denominated and UVR-indexed loans, and interest rate and currency hedges. The project is sponsored by the Spanish company Aleatica S.A.U., a portfolio company of IFM Global Infrastructure Fund.
"The successful close of this transaction strengthens Colombia's road infrastructure during the midst of the global pandemic," lead partner Fabricio Longhin said. "We are pleased to be able to draw on the strength of our team across multiple practices and offices, as well as our experience with Colombia's 4G program, to bring this complex and innovative transaction to a close."
Working with Fabricio was lead deal associate Alejandro Leon in Washington, DC. The full team included lawyers across practice areas in Madrid, Washington, DC, and New York:
- Madrid: partners Jose Guardo (Banking & Finance) and Ignacio Diaz (Litigation), associate Pablo Cancelo (Banking & Finance)
- New York: partners Paul Koppel (ERISA) and Avrohom Gelber (Tax), counsel Greg Kahn (Capital Markets), associates Elizabeth Adams (Tax), Thomas Koh (ERISA) and David Martinez (Capital Markets)
- Washington DC: partner Megan Gordon (Litigation), counsel Catherine Ennis (Litigation)
The firm has wide-ranging experience advising on toll road transactions in Latin America, and 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.