Clifford Chance

Clifford Chance advises on financing for Nueva Malla Vial del Valle del Cauca Corredor Buenaventura-Loboguerrero-Buga 5G toll road project in Colombia

Global law firm Clifford Chance advised JPMorgan Chase Bank, N.A. as lead arranger, Inter-American Investment Corporation, International Finance Corporation, Banco de Comercio Exterior de Colombia S.A. (Bancoldex), Bancolombia S.A., Banco Bilbao Vizcaya Argentaria Colombia S.A., and Financiera Nacional de Desarrollo S.A. as senior lenders, in connection with the COP3.66 billion (~US$909 million) financing for the design, construction, rehabilitation, improvement, operation and maintenance of the concession known as Nueva Malla Vial del Valle del Cauca Corredor Buenaventura-Loboguerrero-Buga 5G toll road project in Colombia, which is part of Colombia’s 5G highway infrastructure program.

The project aims to rehabilitate and expand a 128-kilometer strategic corridor that links Colombia’s interior to its largest Pacific port, Buenaventura and to improve logistics efficiency and regional connectivity, with expected travel time reductions of up to 40 minutes. The financing package includes a Sustainability-Linked Loan from IFC and a financing from IDB Invest that follows its international sustainability standards, the first of its kind for a road concession in Latin America, tying loan terms to environmental and social performance targets. Clifford Chance advised the lenders on the transaction, supporting the structuring and documentation of this landmark infrastructure deal.

The transaction represents a significant milestone in the advancement of Colombia’s 5G infrastructure program and Colombian infrastructure. The financing, provided in COP-denominated credit facilities by the syndicate of international and domestic financial institutions, will underpin the comprehensive development and long-term operation of this critical corridor, enhancing connectivity and fostering sustainable economic growth across the Valle del Cauca region in Colombia.

Lead Partner Fabricio Longhin commented, “We are honored to have supported our clients on this transformative financing. This transaction not only advances Colombia’s 5G toll road program but also demonstrates our firm’s ongoing commitment to responsible and innovative infrastructure development in the region. Clifford Chance has been involved in all 5G toll road financings to date, following our participation in the vast majority of 4G financings in Colombia.”

Longhin was supported by lead associate Julian Hurtado Vallejo and associates Fernando Liu and Adriana Cabal Gutierrez.

This transaction reinforces Clifford Chance’s extensive experience in advising on major sustainable infrastructure projects and project financing across Latin America. Recent matters in Colombia, include the Troncales 5G, the Bogotá-Girardot, the Pamplona-Cúcuta, the Rumichaca-Pasto and the Conexión Norte. The firm also advised on the financing for expansion of Port of Aguadulce in Buenaventura, on a complex debt refinancing for the strategic Puerto Bahia port facility located in Baru, Cartagena, on the financing of the US$672.4 million Antioquia Port project and on the financing for the first line of the Bogota metro.