ICBC contributes to $391 million syndicated loan for Pamplona-Cúcuta 4G Dual-Carriageway Highway Project (Linked to Record ID#92571)

Bank of China and ICBC contribute to USD 391 million syndicated loan for Pamplona-Cúcuta 4G Dual-Carriageway Highway Project The Pamplona-Cúcuta 4G Dual-Carriageway Highway Project is part of the fourth generation (4G) concessions program led by the Government of Colombia through the National Infrastructure Agency (ANI).

The $765 million public-private partnership (PPP) involves the financing, construction, improvement, rehabilitation and maintenance of a 62.00 km long road that connects the towns of Pamplona and Cúcuta (through the municipalities of Pamplona, ​​​​Pamplonita, Chinácota, Bochalema and Los Patios), located in the department of Norte de Santander in Colombia, on the border with Venezuela.

In June 2017, the concession contract, whose duration is 25-years, extendable up to 29-years, was awarded to Unión Vial Río Pamplonita S.A.S. (a special purpose vehicle and wholly-owned subsidiary of Sacyr S.A).

Then, on April 16, 2020, Unión Vial Río Pamplonita, S.A.S. signed a $525 million (EUR 474 million) syndicated loan agreement for the Pamplona-Cúcuta 4G Dual-Carriageway Highway Project.

Sacyr S.A. is a Spanish construction company based in Madrid. 10 financial institutions participated in the lending syndicate: JPMorgan Chase Bank; Deutsche Bank AG, NY Branch; Industrial and Commercial Bank of China (ICBC), Dubai Branch; Bank of China, Panama Branch; Instituto de Crédito Oficial de España (ICO); MetLife; MUFG Bank; Societe Generale; American Equity Investment Life Insurance Company; and Financiera de Desarrollo Nacional (FDN).

The amount drawn on both loan tranches as of December 31, 2020 was EUR 184 million.

However, it is known that ICBC (Record ID#92572), Bank of China (Record ID#92571), and seven other foreign lenders contributed to the US dollar-denominated tranche, while FDN led the Colombian peso-denominated tranche. The loan that was issued in April 2020 was refinanced in June 2023.

The proceeds from the refinancing loan were to be used by the borrower to pay off existing debt and replace the concession’s reserve accounts by letters of credit charged to the project (valued at $65 million).

The refinancing loan was supported by a group of commercial banks, development institutes and multilateral agencies: IDB Invest – $125 million; Financiera de Desarrollo Nacional (FDN) – $77 million; Allianz Capital Partners – $56.87 million; Bladex – $56.87 million; Instituto de Crédito Oficial de España (ICO) – $56.87 million; JP Morgan – $56.87 million; MetLife – $56.87 million; MUFG Bank – $56.87 million; Santander – $56.87 million; and BlackRock – $41.84 million.

The project is located in the department of North Santander.

It involves 50.2 km of new road construction, 72.2 km of existing road rehabilitation (between Pamplona and a section of Betania, Los Patios), the construction of two tunnels (measuring 1.4 km and 1.1 km), the construction of 25 new viaducts and 4 pedestrian passageways, and the rehabilitation of 23 existing bridges.

Upon completion, the Pamplona-Cúcuta 4G dual-carriageway highway will pass through the northeast region of Colombia and on to the border with Venezuela.

It is intended to reduce travel times and operating costs for users, thereby guaranteeing a quicker and safer road corridor. Construction began in August 2018. However, the first loan disbursement did not take place until April 16, 2020. By May 2022, the project had achieved a 76% completion rate. The first tunnel was opened on August 4, 2022.

By May 2023, the project had achieved a 87.62% completion rate. The project was originally scheduled to reach completion by the end of the first half of 2023.