Narrative
Full Description
Project narrative
On December 18, 2017, Grupo Energía Bogotá S.A. E.S.P. (GEB) — a Colombian state-owned public services company engaged in the generation, transmission, distribution and commercialization of energy, including gas and combustible liquids in all their forms — signed a $749 million syndicated loan agreement with the following banks: Bank Of America, N.A., Citibank, N.A., Sumitomo Mitsui Banking Corporation, Bancolombia (Panama) S.A., Banco de Bogota S.A. New York Agency, Mizuho Bank, ltda, The Bank of Nova Scotia, Banco Santander S.A., Natixis, Exporter Development Canada, Banco de Credito del Peru, Banco de Sabadell S.A. Miami, Intesa Sanpaolo S p.A. New York Branch, Ing Capital LLC, JP Morgan Chase Bank N.A, The Bank of Tokyo Mitsubishi UFI Ltd, Industrial and Commercial Bank of China Limited, dubai (Difc) Branch, Banco de Credito e Inversiones SA Miami Branch, and Mercantil Bank, N.A. The loan carried a 6-year maturity and an annual interest rate of LIBOR plus a 2.15% margin. The borrower was expected to use the proceeds of the loan to repay outstanding debt under an international bond that was issued through the Luxembourg Stock Exchange and that was scheduled to reach maturity in 2021.
Staff comments
1. Grupo Energía Bogota S.A. E.S.P. (GEB) is a leading owner, developer and operator of electricity and natural gas infrastructure assets across Latin America, with a presence in Colombia, Peru, Guatemala and Brazil. Pursuant to Agreement 01, 1996, the District of Bogotá is required to hold at least a 51% ownership stake in Grupo Energía Bogotá. A modification of this agreement requires certain regulatory approvals (including the municipal council’s authorization). 2. The exact size of Bank of China’s contribution to the syndicate is unknown. For the time being, AidData assumes equal contributions ($39,421,052) across the 19 members of the syndicate. This issue warrants further investigation. 3. AidData has estimated the loan's all-in interest rate (3.91804%) -- at the time it was issued -- by adding 2.15% to average 6-month LIBOR in December 2017 (1.76804%).