September 26, 2017 |
When the Colombian government designed the fourth generation (4G) of toll road concessions, it decided to make the projects large enough to attract international developers. But as the program advanced, and as eight projects worth a combined 12.6 trillion pesos ($4.24 billion) reached financial close last year, the initial expectations that the local banking sector could finance the roads alone proved shortsighted.
Through the national development bank Financiera de Desarrollo Nacional (FDN), the government has pursued various measures to diversify funding sources. These include encouraging new debt funds and lending in pesos to foreign banks that support the 4G projects.
But the plans do no
Financing Colombia’s 4G toll road concessions is getting tougher as local and global lenders are squeezed. But now the national development bank is betting on some new routes to attract capital