Isagen Borrows for Hydro Project

Colombian state-controlled power generation company Isagen has signed a COP1.54trn ($812m) 10-year loan to finance the Sogamoso hydroelectric project, it says. The company does not disclose the rate on the loan, which includes a 3-year grace period. The group of lenders is composed of Bancolombia, Banco de Bogota, Davivienda, Banco de Occidente, Banco Popular, Banco Agrario, AV Villas, BCSC, Banco Santander and Helm Bank. The 820MW plant on the Sogamoso River in eastern Colombia is expected to cost COP4.5trn. Isagen will add the loan funds to those raised in a COP450bn September bond sale and a $140m CAF loan agreed in December. The company says it may issue another COP400bn in bonds to support the project, which it says requires COP2.7trn in financing.