Global Infrastructure Partners (GIP) has closed on a US$110m secured loan investment in Colombia-based greenfield multipurpose port terminal Puerto Antioquia through its credit funds Global Infrastructure Partners Capital Solutions Funds I and II.
(Press Release) Global Infrastructure Partners (GIP), a leading global, independent infrastructure investor, announced today that its credit funds, Global Infrastructure Partners Capital Solutions Funds I and II (“GIP CAPS”) closed on a $110 million secured holding company term loan investment in Puerto Antioquia Holdings S.A.S. Puerto Antioquia is a greenfield multipurpose port terminal to be strategically located in the Northern coast of the Department of Antioquia, Colombia. Astris Finance, financial advisor to the Sponsors, has coordinated project development and financing.
The Project is owned by a consortium consisting of CMA Terminal Holdings S.A.S, the port operations arm of CMA CGM S.A., the third largest shipping line in the world, Eiffage S.A, a top tier construction company, Puertos Inversiones y Obras S.A.S., an experienced Colombian port owner and operator, and a private consortium of banana producers and exporters (together, the “Sponsors”).
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 utilized to fund construction of an approximately $725 million port facilities project.
The Project is underpinned by long term volume commitments with the consortium and will be strategically located as Colombia’s closest port to the Atlantic Coast. It is geographically positioned to capture a large share of dry containers traffic originated from important economic regions of Colombia, including Medellin, Bogota, the Coffee Axis and other hinterland regions.
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 significant 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.”
About Global Infrastructure Partners
Global Infrastructure Partners (“GIP”) is an independent infrastructure fund manager that makes equity and debt investments in infrastructure assets and businesses. GIP targets investments in the energy, transport and water/waste sectors in both OECD and select emerging market countries. GIP’s teams are located in 10 offices: London, New York, Stamford (Connecticut), Sydney, Melbourne, Brisbane, Mumbai, Delhi, Singapore and Hong Kong. GIP CAPS is part of GIP’s credit platform (“GIP Credit”) which provides financing solutions and makes debt and non-common equity investments in infrastructure assets and companies. For more information, visit www.global-infra.com