Global Infrastructure Partners Capital Solutions Funds I and II (“GIP CAPS”) has closed on a $110 million USD secured holding company term loan investment in Puerto Antioquia Holdings S.A.S., the port terminal in the Gulf of Urabá on the Atlantic coast of Antioquia, Colombia. Astris Finance has coordinated project development and financing.
The project is owned & sponsored by a consortium consisting of CMA Terminal Holdings S.A.S, the port operations arm of CMA CGM S.A., construction firm Eiffage S.A, Puertos Inversiones y Obras S.A.S., and a private consortium of banana producers and exporters.
Proceeds from the GIP CAPS’ holding company investment, together with senior debt provided by a group of multilateral banks and equity capital from the sponsors, will be used to fund construction of the port facilities valued at approximately $725 million USD.
The project is underpinned by long term volume commitments with the consortium and located in Antioquia, the same department as Colombia’s second largest city of Medellín, expects to capture a large share of dry container traffic from important economic regions of Colombia, including Medellin, Bogota, the Coffee Axis and other interior departments.
Puerto Antioquia represents GIP CAPS II’s inaugural investment and GIP Credit’s second capital commitment to Latin America. The CAPS strategy provides customized credit financings for infrastructure issuers in GIP’s core sectors of midstream energy, power, renewables and transport, while leveraging GIP’s operating expertise.
“We are very pleased to have entered into this transaction with Puerto Antioquia and its sponsors,” said Jennifer Powers, GIP Partner and Chair of GIP Credit. “Puerto Antioquia is a landmark project for Colombia and is expected to change the dynamics of trade in the country given its strategic location. It is expected to capture immediate cargo and create a significant positive impact in the Uraba region. The Port will provide significant socio-economic impact to the region, as evidenced by multilateral financing support from its senior lender, one of the most important banks in Latin America.
“This investment exemplifies GIP CAPS’ ability to provide unique credit solutions for high quality, essential infrastructure projects, and our commitment to Latin America where we see unique core infrastructure opportunities. “
Laurent Martens, Head of CMA Terminal said: “We are very happy with this continuing partnership with GIP. They have been a resourceful and proactive partner throughout development. We very much appreciate GIP’s unabated support in spite of current market conditions to close the financing of this ambitious project.”