A few months ago prizes were awarded to the Reficar and Oleoducto Bicentenario transactions in Colombia. Now, once again BBVA Colombia stands out as an important participant in funding major infrastructure works in the country.
With capacity of 820 megawatts, Hidrosogamoso is one of the main clean power generation projects in Colombia. It is on the river of the same name in the Santander Department, and will employ around 3,500 people during the construction of the dam and other civil engineering works.
The project will receive a total investment of around US$1,600 million. The construction work is on time, and so far 55% of the work is ahead of schedule. The project is expected to be started up by the end of 2014.
In the specific case of BBVA Colombia, through the Corporate and Investment Banking Medellín and Structured Trade Finance areas, which belong to the Global Lending Unit, it participated alongside the Bank of Tokyo Mitsubishi on funding the purchase of Japanese electromechanical equipment (turbines, valves and generators) which will be supplied by Mitsui and Toshiba.
This section, up to US$66 million dollars, was designed with participation from the Japanese Bank for International Cooperation and guaranteed by Nippon Export and Investment Insurance (NEXI). This participation from JBIC and the guarantee from NEXI improved the debit profile and its rating, making funding from commercial banks possible.
Once authorization was received from the Ministry of Finance and Public Credit, Isagen worked together with Japanese agencies and commercial banks to close the credit deal which was signed by Representatives of JBIC and NEXI, commercial banks and the Japanese Ambassador in Colombia.