Colombian municipal utility company Empresas Publicas de Medellin (EPM) has secured a $349m loan from IFC for the improvement of water services in the country
IFC's financing will help EPM improve access to water, sewerage services and electricity for nearly 2.3 million people in Medellin and the surrounding areas. EPM CFO Oscar Herrera said the operation is critical to support the utility's investment programme for the expansion of water and electricity services to underserved communities in Medellin and the surrounding areas. "The successful IFC-led financing also shows the confidence of local and international markets in EPM," he said.
IFC Infrastructure and Natural Resources global director Vincent Gouarne added: "Our partnership with EPM shows our commitment to continue supporting sound public services companies in Latin America that have a strong development impact. Over half of the 2.3 million beneficiaries of the improvement and expansion of EPMs water and electricity services are poor."
The financing includes a seven-year $25m loan from IFC's own account and a $324m syndicated loan. The syndication, led by IFC as a book runner, was heavily oversubscribed with $750m in orders from 15 international banks. The amount was three times the original launch amount of $250m, enabling IFC to increase the loan to $324m, the maximum allowed under the financing plan.
Under the sub-national programme, IFC provides financing without sovereign guarantees to local governments and public enterprises for essential infrastructure investments.
