Dentons Cardenas & Cardenas advises Nuevo Cauca S.A.S. on a high-end financing critical to ensure the modernization of road infrastructure in southwestern Colombia

Dentons Cardenas & Cardenas advised Nuevo Cauca S.A.S. on the financing of the Nuevo Cauca Project for an approximate amount of US$264 million, with the funds allocated to the construction of the dual carriageway connecting the cities of Popayan and Santander de Quilichao in the department of Cauca. The financing was provided by Bancolombia S.A., Senior Debt Fund for Infrastructure CAF-AM Ashmore II, and Private Equity Fund SMBC – LarrainVial Debt – Infrastructure and Energy. The financial closing of this transaction was completed on December 5.

The financial structuring of this initiative will enable the execution of a new dual carriageway between Popayan and Santander de Quilichao, a strategic corridor that will more efficiently connect Cali with the department of Cauca. Consequently, the project is expected to reduce travel times in the region by approximately sixty (60) minutes and generate 1,813 direct jobs and 270 indirect jobs.

Finally, our team supported the client in negotiating and drafting the financing documents, ensuring the success of a transaction that represents a milestone in the development of Colombia’s road infrastructure and the connectivity of the country’s southwest region.

Dentons Cardenas & Cardenas team included: (i) Daniela Mejia, Partner, (ii) Juan Bernardo Caicedo, Associate, (iii) Manuel Julian Gonzalez, Associate, and (iv) Valery Jurado, Associate.