SMBC and LarrainVial partner and launch the first debt fund in Colombian infrastructure

July 2023.- With the objective of financing infrastructure and renewable energy projects in Colombia, Sumitomo Mitsui Banking Corporation (SMBC) and LarrainVial announced the first closing of the Private Equity Fund SMBC – LarrainVial Debt - Infrastructure and Energy . The Fund will reach up to 900 billion Colombian pesos (~US$200 million), will be managed by LarrainVial, and is mainly oriented to Colombian institutional investors.

The Infrastructure and Renewable Energy sectors show important investment needs for the coming years, so the IEDF SMBC&LV Fund will play a relevant role in channeling resources from institutional investors to the Infrastructure and Renewable Energy sectors, following the best practices in the evaluation of the risks associated with these financings and the best techniques in their structuring.

This association combines the experience of both institutions in infrastructure and in the Colombian market. SMBC, a Japanese bank with more than 400 years of experience, is a leader in advising and financing projects in various economic sectors, especially infrastructure and energy. For its part, LarrainVial is a Chilean financial institution with almost 90 years of experience in investment banking, and has been operating in several countries in the region, including Colombia for the past 10 years. Both entities have decided to complement their areas of expertise through this fund with the aim of contributing to the development of the infrastructure and energy sectors in Colombia, as well as channeling resources from institutional investors applying the best asset evaluation, structuring and management techniques. to ensure the best risk-return ratio.

Andrés Pareja , Colombia Country Head at SMBC Bogotá, indicated that "this will allow expanding its product offer to project developers, offering them long-term Colombian pesos at attractive rates for developers and fund contributors."

For her part, María José Ramírez , president of LarrainVial Colombia, pointed out that "institutional investors will be able to invest in Colombian infrastructure in a diversified way, and together with a professional manager with vast experience in the sector."

Andrés Pareja on behalf of SMBC and María José Ramírez on behalf of LarrainVial thanked the pension funds Porvenir, Protección, Skandia and the insurer Global Seguros, who agreed to participate in the first closure of this important effort to contribute to the well-being and growth of Colombia .

This press release was published in English using an automatic translation system.