The Brazilian Development Bank (BNDES) and Empresas Públicas de Medellín E.S.P. (EPM), a Colombian public company that provides water utilities, energy and natural gas, have recently signed a loan agreement for the amount of US$111.4 million as part of the financial plan of the Ituango hydroelectric project.
Located on the Cauca River, which flows through northwestern Colombia, the plant is expected to be the country’s largest hydroelectric facility, capable of generating 2,400 megawatts.
The loan has been granted with a term of 23.5 years and a disbursement period that runs until the completion of the project. This transaction constitutes a framework for future operations between the Colombian public sector companies and BNDES.
This credit transaction is originated in the development of commercial relations with Brazil, which began in 2012 when EPM entered into a contract with the firm Brazilian firm Alstom Energias Renováveis Ltda for the purchase of electromechanical equipment for the construction of the Ituango hydroelectric project.
Jorge Londono De la Cuesta The General Manager of EPM, said:
"This operation means a diversification for our company's funding sources with an entity that is a reference in Latin America. The operation is the first in Colombia with the public sector and we are sure that it will open doors to other public entities in the country for accessing BNDES funding".
In January 2016, we reported that (EPM) secured a US$1 billion loan for the project from a consortium of international banks including 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.