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New financial players closing in on Colombia's 4G highways

Bnamericas Published: Wednesday, May 16, 2018
New financial players closing in on Colombia's 4G highways

New foreign financiers are close to joining Colombia's 4G highways program, as authorities expect 10 projects to achieve financial closure this year, bringing the total to 22.

The potential new financiers include three pension funds, 10 foreign investment funds and several Chinese investors, sources from infrastructure agency ANI were reported as saying by daily Portafolio.

Last month, Colombia's financial development institution FDN signed an agreement with the Chinese Development Bank (CDB) in which the latter became FDN's strategic partner to attract investors from China to Colombian infrastructure projects.

At the time, FDN head Clemente del Valle said that his CDB counterpart, Zheng Zhijie "reaffirmed the bank's interest to participate in the financing of the projects of the 4G program," according to a press release from the institution.

Now, Del Valle also told Portafolio that "there are some Arab funds that have come to see how to enter the business. They are even seeking partnerships to work alongside institutions such as ours."

FDN told the daily that the financial closures in the 4G program this year will be covered as follows: FDN with 16%, local banks with 33%, international banks with 25%, bond issues with 9%, debt funds with 11% and institutional investors with 6%.

Despite the fact that interest from local banks has diminished, Del Valle said that confidence should improve during the second half of the year thanks to the recently passed infrastructure law, which excluded an article that exempted contractors from paying fines to banks in the case of delays or corruption in projects.

For this year, Colombia expects private investments in 4G highways to reach 8tn pesos (US$2.9bn), up from 7.01tn pesos in 2017.

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