Colombia's EPM inks US$1bn loan for Ituango hydro

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Tuesday, January 2, 2018

Colombia's EPM has secured a US$1bn loan with IDB Invest, the private sector arm of the Inter-American Development Bank, as it ties up financing for the Ituango hydroelectric project.

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The dual-tranche loan has a 12-year repayment term with a four-year disbursement period, EPM said in a statement.

The first tranche includes US$350mn from the IDB Group and US$50mn from a Chinese government-IDB Invest co-financing fund. The second is backed by a syndicate comprising CDPQ, KFW, IPEX, BNP Paribas, ICBC, Sumitomo Mitsui, BBVA and Banco Santander.

Located on the Cauca river, 170km northeast of Medellín, Ituango is the largest infrastructure project in Colombia, requiring investment of 11.4tn pesos (US$3.88bn).

It is due to begin generating electricity this year and will boast 2.4GW of capacity when complete.

A consortium led by Brazilian group Camargo Corrêa was awarded a US$1.1bn civil construction contract for the project in 2012 alongside local companies Conconcreto and Coninsa.