EPM Upsizes Debut Loan

Colombian quasi-sovereign utility Empresas Publicas de Medellin (EPM) has upsized an IFC-supported A/B loan to $349m after receiving commitment letters from 14 commercial banks, the company’s CFO Oscar Herrera tells LatinFinance. The A loan remains with a $25m size, but the B portion has increased to $324m from $250m. The deal marks EPM’s first foray into the syndicated loan market as it looks to diversify its funding sources. The B loan pays Libor+187.5bp on a 5-year tranche and +215bp on a 7-year, both with 75bp commitment fees. For MLA tickets of $50m, participants receive upfront fees of 100bp on the 5-year and 130bp on the 7-year, 80bp and 105bp respectively for $25m tickets, 65bp and 85bp for $15m and 50bp and 65bp for $5m. The loan is rated Aa3 by Moody’s and BBB minus by Fitch. Proceeds will go towards investments in energy and water distribution.