Empresas Públicas de Medellín secures financing for 2,400 MW hydroelectric project

Milbank, Tweed, Hadley & McCloy LLP has announced that is has closed on a new advisory assignment for a large energy financing in Latin America. 

The firm has advised integrated Colombian power, gas, water and telecom company Empresas Públicas de Medellín E.S.P. (EPM) in securing a US$1 billion loan from a consortium of international banks.

EPM provides electricity, natural gas and water services in Colombia and throughout Central and South America.

Proceeds from the loan are expected to fund 2016 investment expenses, including EPM’s planned development of the Ituango hydroelectric plant.

Located on the Cauca River, which flows through northwestern Colombia, the facility will upon completion be the country’s largest hydroelectric facility, capable of generating 2,400 megawatts.

Loan underwriters include Bank of America, N.A.; HSBC Securities (USA) Inc.; Bank of Tokyo-Mitsubishi UFJ, Ltd.; Sumitomo Mitsui Banking Corp.; Citigroup Global Markets, Inc.; JP Morgan Securities LLC; and Mizuho Bank, Ltd.

Milbank Global Securities partner Carlos Albarracín led the transaction, which closed on January 7. Assisting Mr. Albarracín on the matter was New York-based Global Project Finance associate Jaime Ramirez and international attorney Camila Quintero.

Mr. Albarracín said: 

“We are pleased to have represented EPM in this important financing, for a project that has been years in the planning and is expected to provide approximately 15% of Colombia’s energy needs as well as extensive employment opportunities. Corporate, project finance and capital markets deal activity across many sectors of Colombia’s economy, which had one of the strongest growth rates in Latin America in 2015, has been extremely active and we expect that trend to continue.”