Colinversiones Preps Multilateral Credit

Colinversiones, the Colombian firm with interests in the energy, financial and other sectors, is negotiating a $130m 12-year loan with CAF and the IFC. The credit should be finalized this month or next, president Juan Guillermo Londono tells LatinFinance, declining to speculate on price. The company recently funded itself with a $300m bridge from Bancolombia, but securing long-term financing to support investment is part of the investment plan. Londono says multilateral rates are more attractive. Colombia’s Empresas Publicas de Medellin recently secured a $450m IDB facility at just 20bp over Libor on a 25-year term, with a 6-year grace period. Colinversiones is looking to fund expansion in the electricity generation sector, a focus that will see it divest holdings in non-core areas over the long term. “In the energy sector, there are favorable conditions for the entrance of new players,” says Londono. He adds that it is a diverse cash generating sector driven by an imbalance – about 1.8x – between demand for electric power and supply. “We are expanding first our current plants, and second designing and building new projects, as well as continuing to expand through acquisitions, including some international expansion in the medium-term,” says the official. Although there is interest, Londono says there are no immediate plans to tap Colombia’s liquid domestic bond market.