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Bank of China contributes $101.8 million to a $509 million syndicated loan agreement with Grupo Energía Bogotá to acquire transmission assets in Brazil from Canadian asset manager Brookfield
| Funder | Bank of China (BOC) |
|---|---|
| Recipient Organization | Grupo Energía Bogota S.A. |
| Country | Colombia |
| Start Date | Nov 23, 2022 |
| End Date | Dec 18, 2029 |
| Duration | 2,582 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 105614 |
Grant Description
Bank of China participates in USD 509 million syndicated loan agreement with Grupo Energía Bogotá for investment purposes On November 23, 2022, 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 $509 million syndicated term loan facility agreement with the following banks: Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia, Bank of China Limited (Panama Branch), Citibank N.A.
International Banking Facility and Banco de Sabadell S.A. Miami Branch.
Scotiabank and Sumitomo Mitsui Banking Corporation acted as lead agents on the transaction, while UMB Bank served as administrative agent.
BOC contributed $101.8 million.
The borrower was expected to use the proceeds of the loan to finance its 2018-2022 Investment Plan and acquire certain transmission assets in Brazil from Canadian asset manager Brookfield.
The assets total approximately 2,416 kilometers of 500 and 230 kV transmission lines and 20 substations in the states of Bahia, Ceará, Minas Gerais, Paraíba, Piauí and Rio Grande do Norte, making GEB one of the largest energy transmission companies operating in Brazil.
The transmission assets (concessions) are: Esperanza Transmissora de Energia, Odoyá Transmissora de Energia, Transmissora José Maria de Macedo de Eletricidade, Giovanni Sanguinetti Transmissora de Energia, and Veredas Transmissora de Energia.
After the completion of the acquisition, the 5 transmission projects were expected to be jointly owned by Argo (62.5% equity stake) and Gebbras/Grupo Energia Bogota (37.5% equity stake). A bullet loan disbursement took place on November 29, 2022.
Then, on November 30, 2022, GEB bought five concessions of energy transmission in Brazil through the investment vehicle Argeb (Argo’s participation of 62.5% and 37.5% of Gebbras).
This acquisition added 2,416 kilometers of transmission lines and 20 substations to Argo’s 1,743 km of transmission lines and 13 substations of Argo. GEB utilized $452 million from the $509 million syndicated loan to finance this acquisition.
Staff Comments
- Holland & Knight represented Grupo Energía Bogotá S.A. E.S.P. (GEB) as borrower. Holland & Knight's representation of GEB on the deal was led by Partner Norberto Quintana, Associate Maria De Bedout and international law clerk Paolo Franco.
- Clifford Chance advised the syndicate of lenders, including Scotiabank and SMBC, as joint lead arrangers and joint bookrunners, as well as Bank of China (Panama), Citibank and Banco de Sabadell (Miami). The Clifford Chance team was led by partner Hugo Triaca and included associates Andrés Berry and Fernando Liu, and foreign law clerk Lucia Guardone in New York. 3.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).
- The exact size of Bank of China’s contribution to the syndicate is $101.8 million. See https://www.dropbox.com/scl/fi/edwqmknjky3baeusnbyej/Acquisition-of-Brookfield-s-Brasil-Transmission-Distribution-Assets-2022-_-Transaction-_-IJGlobal.pdf?rlkey=6hq5re6swo8v23dc6v8myr5fh&e=1&dl=05. For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
Sources & References
- Banking and finance in Colombia
- Bogota Energy Group gets US $509 million loan
- Holland & Knight Represents Bogota Energy Group on $509 Million Syndicated Loan
- Clifford Chance advises on US $509 million acquisition financing to Grupo Energia Bogota
- Bogota Energy Group receives loan to buy concessionaries in Brazil
- Private Equity Deal of the Year
- Grupo Energia Bogota S.A. E.S.P.
- Grupo Energia Bogota: Relevant Information
- Acquisition of Brookfield's Brasil Transmission & Distribution Assets 2022
- PFR is now part of the IJGlobal platform
- Grupo Energia Bogota Relevant Information
- GEB completes Brazilian transmission acquisition
- Compromiso de Fusion
- Entre Grupo Energia Bogota S.A. E.S.P. y Elecnorte S.A.S. E.S.P. Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Grupo Energía Bogota S.A.
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