The Financiera de Desarrollo Nacional (FDN), a member of the Grupo Bicentenario, has announced its participation in the financial closing of the El Campano Solar Park. Located in Chinu, Cordoba, the renewable energy project is designed to strengthen national energy security and support the transition toward cleaner power sources.

The initiative involves the development, construction, and operation of a photovoltaic solar plant with an installed capacity of 128.8 MWdc (99.9 MWac). The facility is scheduled to begin commercial operations by the third quarter of 2027.

The financial structure includes a commitment from the FDN of up to $157.5 billion COP, consisting of senior debt and a bank guarantee. This contribution represents approximately 50% of the total project debt. The total investment for the project is estimated at $453.9 billion COP, utilizing a framework that combines private equity and long-term debt.

“The financial closing of the El Campano Solar Park represents a firm step in the consolidation of a cleaner, more resilient, and sustainable energy matrix for Colombia.” — Rafael Herz, acting president of the FDN

“The financial closing of the El Campano Solar Park represents a firm step in the consolidation of a cleaner, more resilient, and sustainable energy matrix for Colombia,” stated Rafael Herz, acting president of the FDN. “At FDN, we remain committed to mobilizing investment toward strategic projects that not only strengthen the country’s infrastructure but also generate positive environmental and social impacts in the regions.”

Revenue for the El Campano Solar Park is supported by a 15-year energy purchase agreement (PPA) with ISAGEN, a company maintaining a AAA credit rating. The contract operates under a “pay-as-generated” modality. Furthermore, the project is set to receive income via the Cargo por Confiabilidad (Reliability Charge) over a 20-year period, a mechanism intended to ensure long-term financial stability and debt service capacity.

The project is being developed by Atlas Renewable Energy in partnership with ISAGEN (BVC: ISAGEN). This collaboration is part of a broader joint strategy aiming to develop up to 1,000 MW of solar projects in Colombia by 2030.

In addition to its contribution to the Sistema Interconectado Nacional (National Interconnected System), the project is expected to reduce carbon dioxide emissions by approximately 4 million tons over its operational lifespan. This alignment follows national objectives regarding sustainability and climate change mitigation.

According to the FDN, the project integrates environmental, social, and governance (ESG) criteria into the financing decision-making process, focusing on the decarbonization of the economy and regional development.

The Norwegian renewable energy company Scatec ASA (OSE: SCATC) has reached financial close and initiated construction on the Barzalosa solar power plant in Colombia. The project, located in the municipio of Nariño within the department of Cundinamarca, has a planned capacity of 130 MWp. Total capital expenditure for the facility is estimated at $121 million USD.

The financing structure for the project is based on a 70% leverage model, utilizing a combination of equity and non-recourse debt. Scatec holds a 65% equity stake in the venture, while Norfund, the Norwegian investment fund for developing countries, provides the remaining 35%. The senior debt was provided by Bancolombia S.A. (NYSE: CIB; BVC: BCOLOMBIA) and the Financiera de Desarrollo Nacional (FDN).

The Financiera de Desarrollo Nacional committed a total of 200,358 million COP to the project. This includes a senior debt facility of up to 164,458 million COP with a term of 18 years, representing approximately 50% of the total project debt. Additionally, the FDN provided a bank guarantee of up to 35,900 million COP to substitute reserve accounts for debt service and operation and maintenance costs. The FDN also acted as a co-structurer for the financial framework of the operation.

“The financing of the Barzalosa project reflects the capacity of the FDN to structure long-term financial solutions that make strategic energy transition projects in Colombia viable,” said Enrique Cadena, Vice President of Structured Finance at the FDN.

The law firm Holland & Knight served as legal counsel to the lenders, Bancolombia and FDN, in the COP 330 billion financing transaction. The legal team was led by partner María Juliana Saa, with support from partner Inés Elvira Vesga and associates Juan Sebastián Parra and Juan Felipe Alonso. Other legal and financial advisors involved in the transaction included Cuatrecasas, which advised the borrower; Brigard Urrutia, which advised FDN regarding the credit facility; and Astris Finance, which provided financial structuring advice.

Revenue for the plant will be supported by a 15-year Power Purchase Agreement (PPA) with BTG Pactual Comercializadora de Energía (BVMF: BPAC11). The agreement covers 85% of the estimated energy production and is denominated in Colombian pesos, with adjustments based on the Producer Price Index. The remaining 15% of production will be sold on the Colombian spot market. The project is also eligible for the Cargo por Confiabilidad (reliability charge) and may access resources from the Inter-American Development Bank and the Climate Investment Funds.

Construction includes the installation of the solar array and the development of a six-kilometer transmission line to connect the plant to the national grid. Scatec is acting as the lead developer and the designated Engineering, Procurement, and Construction (EPC) provider, covering approximately 70% of the capital expenditure. The company will also manage operations, maintenance, and asset management. The Barzalosa plant is expected to reach its commercial operation date in the first half of 2027.

Banking Sector Statement on the Update of the OFAC Designated Parties List

Bogotá, D.C., October 24, 2025 (@Asobancaria). The Colombian financial system has been a global benchmark in the fight against money laundering and terrorist financing for more than three decades. In fact, Colombia was the first country in the Americas to have an anti-money laundering system, following the 1992 Interbank Agreement for the Detection, Prevention, and Suppression of Illicit Capital Movements.

Since then, the country has maintained strict compliance with standards in this area, with collaboration and communication with both U.S. authorities and correspondent banks being essential.

In light of the recent decision by the United States government to include the President of the Republic, members of his family, and the Minister of the Interior on the OFAC list, the sector reiterates its commitment to compliance with international standards. At the same time, it will continue to act in accordance with financial consumer rights, local regulations, and the jurisprudence of the Constitutional Court.

The Colombian financial system will begin working in coordination with national and international authorities to preserve its stability and integrity, as well as the trust of its citizens.

In other words, the banks, through their trade organization, as not to expose any individual bank, have stated that they intend to comply with sanctions, subject to “financial consumer rights, local regulations, and the jurisprudence of the Constitutional Court.”

Analysis

It is hard to imagine a local bank freezing President Gustavo Petro’s personal accounts during the remaining 10 months of his presidency. The President directly controls Colombia’s financial regulation agency, Superfinanciera, and also influences, Banco De La República, the country’s central bank. Once the president leaves office, unless replaced by an ally (somewhat unlikely), there is no love lost between the current leftist president and the financial sector. Aside from this, the local banks would have more to lose being cut off from the international financial system than from facing the ire of Petro’s remaining supporters, post-presidency. The banking sector and its shareholders have faced constant attacks from Petro during his presidency, with him calling them “oligarchs” and “controllers of capital.”

Should a Petro ally actually win next year’s presidential election, all bets are off, as the banks will face pressure to be sympathetic to Petro at the cost of losing access to the international financial system in an environment of accelerating capital flight and diminishing foreign direct investment (FDI).

In the short term, expect local banks to play a waiting game, It is not immediately apparent that Petro or his family has any great wealth to lose abroad, though the designation may seriously retard his apparent ambitions of being some sort of international revolutionary statesman on the global stage post-presidency, with travel and financial restrictions in OFAC compliant jurisdictions, almost everywhere except bastions of liberty such as Iran, Russia, North Korea, Cuba, and Nicaragua.

The project is slated for development within communities located in the area of influence of the Jemeiwaa Ka’l wind cluster, operated by AES Colombia (The AES Corporation, NYSE: AES) in the municipality of Uribia. The first stage will encompass the JK1 and JK2 wind farms, which have a total capacity of 259 MW.

FDN, a development bank, structured the project’s financing, approving a senior loan of $11.6 billion COP and a liquidity line of $1.12 billion COP. Additional funds for the project are being contributed by AES Colombia and Soluna as investors. These funds will be managed through a trust administered by Fiduciaria Bogotá S.A.

According to FDN President Francisco Lozano, the project’s financing is intended to address social gaps in La Guajira, a region where 31.4% of the population lacks access to electricity. The project aims to provide continuous 24/7 power, which could facilitate educational and productive activities for the beneficiary population.

The initiative aligns with AES Colombia’s sustainability strategy and contributes to Sustainable Development Goal 7: affordable and clean energy. Its objective is to supply clean energy to Wayuu indigenous communities in off-grid rural areas. Federico Echavarría, general manager of AES Colombia, stated that the project, which has been under structuring for several years, demonstrates the company’s commitment to renewable energy development and contributes to an energy transition.

The first phase of the project is projected to benefit 840 households, with the potential to expand to an additional 3,000 homes. The solar technology will enable residents to power appliances such as refrigerators, computers, and mobile phone chargers.

The project’s financing includes resources from a special line of the Climate Investment Funds (CIF) and the Inter-American Development Bank (IDB), which are being channeled through FDN. This marks the first disbursement from this line, which is designed to support projects with social and environmental impacts, particularly those promoting renewable energy for a just energy transition. The project is also noted as the first of its kind to be financed via a project finance structure, potentially setting a precedent for its replication in other Colombian communities without electricity access.

Soluna will be responsible for the operation and maintenance of the project, ensuring a sustainable service at a subsidized rate. The implemented scheme is designed to be affordable for the beneficiary population.

Pictured from left to right: Daniel Vallejo, CEO of Soluna, Federico Echavarría, CEO of AES Colombia, and Francisco Lozano, President of FDN. Photo credit FDN

The other financial institutions involved in the project are the International Finance Corporation (IFC), the Inter-American Development Bank (IDB), Bancolombia (NYSE: CIB), Bancóldex, and BBVA (NYSE: BBVA).

The project is sponsored by the Spanish company Sacyr (BME: SCYR). It covers a 128 km segment between Buga and Buenaventura, including the construction of 35 km of new roadway and bypasses, as well as the rehabilitation of 25 km. The plan also involves the upgrade and improvement of 186 km of existing road, in addition to the operation and maintenance of 244 km.

About FDN

Financiera de Desarrollo Nacional (FDN) operates as a private-sector development bank specializing in providing financial solutions for infrastructure projects. Its objective is to increase liquidity within the infrastructure sector.

The shareholders of FDN include Grupo Bicentenario, the International Finance Corporation (IFC), Sumitomo Mitsui Banking Corporation, and CAF – Development Bank of Latin America and the Caribbean. The inclusion of the two multilateral organizations and the Japanese private bank as shareholders has enhanced FDN’s operational autonomy, technical capacity, and financial strength by incorporating international best practices and a robust corporate governance framework.

Buga-Buenaventura highway. Photo credit: Sacyr website.

The credit agreement intends to fund infrastructure projects for companies with Spanish shareholders domiciled in Colombia. This collaboration seeks to enhance foreign investment in Colombia’s infrastructure sector.

This marks the inaugural collaboration between FDN and ICO under the International Channel Line. Both institutions expressed optimism about establishing a long-term partnership to advance business development between the two nations. Francisco Lozano, president of the FDN, stated, “This credit complements FDN’s financing sources and promotes foreign investment in infrastructure projects that contribute to improving the quality of life for Colombians.”

According to available data, 571 Spanish companies operating in Colombia could qualify for financing under the agreement. Loan repayment terms extend up to 15 years.

Manuel Illueca, President of ICO, emphasized, “This new agreement strengthens ICO’s position in channeling resources to multilateral, public, promotional, or private banks abroad through a traditional and effective program, such as the ICO Lines and their public-private collaboration framework.”

The ICO International Channel Line supports the financing and operations of Spanish-affiliated companies in international markets through partnerships with local financial entities. To date, ICO has signed 45 financing agreements under this initiative, mobilizing approximately €5 billion EUR and supporting more than 500 projects, primarily in Latin America and the Caribbean.

This program simplifies application procedures by leveraging the local market knowledge of partnering entities. It also facilitates financing in local currencies in the countries where the business activities or projects are implemented.

Photo credit: Facebook/Instituto de Crédito Oficial (ICO).

The 10-year concession includes the replacement of 205.5 kilometers of rail from 75 lb/yd to 115 lb/yd, upgrades to sleepers, ballast improvements, refurbishment of rolling stock, construction of an administrative building, an Operations Control Center, two train maintenance workshops, and a Cargo Transfer Center. Additionally, it involves implementing advanced signaling, communication, and train control systems, as well as the operation and maintenance of the infrastructure and freight transport services using rolling stock allocated by the nation.

ANI plans to evaluate the proposals and bidders over the next two months, with the contract award anticipated in April 2025.

Headline Image: The La Dorada-Chiriguaná railway project. Photo credit: National Infrastructure Agency (ANI).

The collaboration seeks to secure funding and seed capital for the energy projects, identify a majority investor, and designate an energy dispatch operator. The planned installations include a 7.6 MWh solar plant with 8.8 MWh battery capacity for Mitú and a larger 14 MWh solar facility with 17.3 MWh battery storage for Puerto Leguizamo. These projects are designed to provide a consistent supply of renewable energy to over 22,000 residents in Vaupés and 20,000 in Puerto Leguizamo.

The renewable energy installations are expected to replace roughly 2.1 million gallons of diesel annually.

According to FDN President Francisco Lozano, this initiative represents a significant step in addressing energy needs in underserved areas and aligns with Colombia’s objectives for a “Just Energy Transition.” Lozano noted that FDN’s expertise in structuring and financing high-impact projects will support the provision of clean and reliable energy access for rural and Indigenous communities.

The renewable energy installations are expected to replace roughly 2.1 million gallons of diesel annually, substantially reducing greenhouse gas emissions and decreasing air pollution. These efforts aim to help protect the Amazon’s fragile ecosystems and biodiversity while contributing to Colombia’s broader sustainability goals.

FDN plans to leverage its experience in Project Finance structures to meet high socio-environmental standards throughout the project life cycle. Following comprehensive due diligence, FDN may also participate as a financing entity.

Colombia’s National Development Finance Company (FDN) has as shareholders the National Government through its Bicentennial Group entity, the International Finance Corporation (IFC), the Sumitomo Mitsui Banking Corporation and the Development Bank of Latin America (CAF). It is an entity linked to the Ministry of Finance and Public Credit.For additional information on FDN’s involvement and progress on these renewable energy projects, visit FDN’s website.

Above photo (courtesy FDN): Standing from left to right: Camilo Baptiste (Partner Bonus Asset Management) and Daniel Umaña (President Due Capital and Services)
Seated: Francisco Lozano (President FDN), Marisela Alvarenga (General Director of Business IDB Invest) and Mario Pardo (President BBVA Colombia)

The project has total financing of 2.76 billion pesos, of which 825 billion are in pesos, 747 billion pesos financed in dollars, 278 billion in UVR and 915 billion in bonds. The participation FDN in the financing is denominated in pesos.

“With this closing there is evidence of a boost in the financing of infrastructure projects in Colombia. At the FDN, we are working to continue participating actively in financing and to regain the momentum with which we came before the pandemic in order to support the development of infrastructure in the country,” said Francisco Lozano, president of the FDN.

With this financing secured as part of the 4G Program, 31 billion pesos of financing have been committed across 22 projects. 24% of the resources have come from local banks, 27% from institutional investors (debt funds 11%, institutional 16%), 35% from international sources and 14% from the FDN.

The sponsor of the Autopista Río Magdalena 2 project is Spanish firm Aleática S.A.U., according to FDN, a subsidiary of investment manager IFM Investors, which in turn is one of the largest Australian pension funds. IFM Investors has 25 years of experience investing in infrastructure projects with more than 52 billion dollars in equity and with a presence in 9 countries in 32 companies as part of its portfolio.

“This closing shows the interest and commitment of funders and investors to finance well-structured projects such as the Río Magdalena 2 Highway,” Lozano pointed out.

The downgrade of the sovereign follows the withdrawal of a fiscal reform introduced to Colombia’s congress in a context of high spending pressures, which has resulted in a significantly lower likelihood of Colombia improving its fiscal position following a recent and marked deterioration. Given the country’s high external vulnerability and moderate economic profile (balanced by adequate institutions and monetary credibility), Colombia’s debt, stabilizing at about 60% of GDP during 2021-2024, and relatively large fiscal deficits are no longer consistent with an investment-grade (‘BBB-‘ or higher) foreign currency rating.

The downgrade of the two government-owned development banks reflects their very important economic roles and links to the government. Similarly, the ratings on the sovereign cap those on Banco Davivienda, given the commercial bank’s large exposure to country risk and the highly sensitive nature of its businesses to sovereign stress. Finally, S&P says the rating actions do not reflect a deterioration in the entities’ stand-alone credit profiles (SACPs).

See Also: S&P Lowers Colombian Currency Rating to Junk: BB+