Colombia's EPM inks US$650mn loan for investment plan

Colombia's Empresas Públicas de Medellín (EPM) has secured a US$650mn syndicated loan from a consortium of international banks to help finance its 2025 business plan. 

The operation, which has a five-year term, was led by Scotiabank and Sumitomo Mitsui Banking Corporation (SMBC), EPM said in a regulatory filing.

Seven other banks – including American, European and Asian lenders – participated in the transaction, it said, without providing details. 

According to EPM, the loan was oversubscribed 1.6 times. It added that the funds would also be used for non-investment expenses.

"This transaction demonstrates the confidence and support of international banks in EPM, which relies on solid financial performance, its leading position in the Colombian public services market, and its support for the region's development through the services the company provides," CEO John Maya said. 

Investments

According to EPM's latest business plan, the company expects to invest 13.9tn pesos (US$3.4bn) in 2025.

Some 4.2tn pesos have been set aside for infrastructure expansion works, including 1.4tn pesos for its flagship 2.4GW Hidroituango hydroelectric project in Antioquia department.

Another 4.6tn pesos are earmarked for operations and maintenance while 3.2tn pesos are assigned to "assets and inventories for the provision of services."

The company's overall 2025 budget is 30.1tn pesos, which includes operational costs, royalties, taxes, debt servicing and free cashflow. EPM's estimated 2024 investment outlay was 11.7tn pesos.