September 9, 2016 |
Latin America’s loan market remains focused on Colombia’s 4G toll road concessions program, with local banks getting more involved and the government taking steps to set up access to financing for the later rounds. The rate of projects reaching financial close has slowed from earlier this year, but the true test will likely come in the months ahead, when projects from the second and third rounds of the concession auctions look for funding. By then, local lenders will have a clearer picture of how much they can afford and they may have settled upon their favorite developers, making the financing environment more difficult for sponsors that have not built close relationships with banks.
Colombian toll road concessions remain in the spotlight, but they could test the market’s financing limits in the months ahead