ISA Seeks Dollar Loan

Colombian power company and concession operator ISA is seeking a $150m loan from international banks, say bankers familiar with the process. The company is aiming for the longest possible tenor and has not specified terms, according to a local banker. One requirement appears to be a 3-year grace period. A Colombia-based corporate banker says the company’s preference would be for tenors as long as 7-10 years. While international lenders might have a hard time approving such a line, domestic Peruvian and Colombian banks may be able to stretch tenor. Funds are destined to help finance a new concession ISA won in November in Peru. It was awarded a 30-year contract to build and operate the Zapallal-Trujillo transmission line. Regional and local lenders are heard circling the company with financing suggestions, and European banks are also heard eyeing the process. ISA officials did not return calls seeking comment.