Sunday, January 20, 2019

Become part of our community

captcha 

Companies 179

Written by December 21 2018 0

Colombia’s Transport Ministry and its Agencia Nacional de Infraestructura (ANI) infrastructure agency announced December 20 that they've granted a conditional 30-year concession license to the developers of the proposed “Puerto Pisisi” Atlantic freight port at Turbo, Antioquia.

According to ANI, the initial investment would total US$133 million, and when completed the port eventually would handle 1.7 million tons/year of general cargo, containers, solid and liquid bulk materials, vehicles and hydrocarbons.

“Puerto Pisisí is expected to become one of the most representative ports in the Gulf of Urabá, as it is a maritime zone that offers geostrategic conditions for the movement of cargo towards the center of the country,” according to ANI.

“This port is part of the strategy of connecting the country with the world and is complemented by the program of projects of the 4G [fourth-generation] highways that are being executed in Antioquia,” added ANI president Louis Kleyn.

The conditional license requires the Pisisi port developers to sign a construction contract within one year, upon which it could start finalizing its investment plan.

“This terminal expects to mobilize more than 300,000 tons for the first year of operation, until reaching about 1.7 million tons by year 30,” according to ANI.

Written by December 20 2018 0

Medellin-based international electric-power transmission and highway concessions giant ISA announced December 19 an “alliance” deal with Medellin-based construction giant Construcciones El Condor for highway deals in Colombia and Peru.

According to the new partners, ISA will have a controlling 51% stake in the alliance.

“ISA is taking quick steps to materialize the ‘ISA 2030 strategy’ that was recently made public, in which emphasis on the road business is focused on consolidating its business in Chile, where it is currently a leading player, and on exploration of new markets in Colombia and Peru,” according to the company.

“ISA brings its extensive experience as an operator in Chile, where it currently leads the segment of interurban highways, its financial muscle and its leadership as a ‘multilatina’ [company]; while Construcciones El Cóndor S.A, brings its recognized experience in construction, concession management and road infrastructure projects.”

Besides opening doors to public tenders for road concessions in Colombia and Peru, the alliance also “opens the possibility of executing a joint strategy of evaluation, participation and acquisition of concessions,” according to ISA.

In Colombia, several “fourth generation” (4G) highways are nearing completion, so new contracts to maintain and operate these highways are soon to be put up for bid, the company noted.

Luz María Correa Vargas, president of Construcciones El Cóndor, added that “we are a relevant player in Colombia with nearly 40 years in the market. We have great strengths in the management of concession contracts, especially in the structuring of offers, and in the design, construction and engineering of road concessions.

“Our goal is to continue growing and for this, the support of a solid and recognized company like ISA is key. We find that we have an affinity of interests and that we complement each other to be leaders,” she said.

Constructora Conconcreto Loan Syndication

On a related front, Medellin-based Constructora Conconcreto announced December 19 that it just won a syndicated loan agreement with Colombia banking giants Bancolombia, Banco Davivienda, Banco de Bogota, Itaú Corpbanca Colombia, Banco Popular, Banco de Occidente, Banco Santander de Negocios Colombia, BBVA Colombia and Commercial Bank AV Villas.

“The support and vote of confidence of all the banks that participated in this process for Constructora Conconcreto S.A. is undoubtedly a favorable symptom for the construction sector in our country,” according to Conconcreto.

“This contract allows the company to re-profile its financial debt at a value of COP$639.8 billion [US$198 million], a loan whose maturity date will be December 31, 2023.

“Thanks to these new conditions, Constructora Conconcreto S.A. it is able to continue with the fulfillment of the investment plan required in strategic projects, which reaffirm the sustainability of the company in the long term and contribute to the national infrastructure, such as:

“• Via 40 Express, one of the most important concessions in the country, since it is the most important commercial artery in Colombia, connecting the Sabana de Bogotá with the Port of Buenaventura.
“• Consortium Vial Helios, which will complete the execution of Section 1 of Ruta del Sol, corresponding to the sector between Villeta and Puerto Salgar.
“• The continuation of 21 housing projects, which represent more than COP$760 billion [US235 million] in revenues for the company, which are located in the main cities of the country.”

The new credit agreement is backed by Conconcreto’s COP$540 billion (US$167 million) equity in the “Pactia” real-estate private equity fund; other real estate valued at COP$58.3 billion (U$$18 million); and a fiduciary-rights security interest agreement in the Malachí Trust, whose underlying asset is a property worth COP$80 billion (US$24.7 million), according to the company.

Written by December 12 2018 0

Medellin-based credit union Cooperativa Financiera de Antioquia (CFA) revealed this month in a filing with Colombia’s Superfinanciera regulatory agency that it won a favorable AA rating for long-term debt from Bogota-based debt rater Value & Risk Rating (VRR).

CFA also won a favorable “VrR1” rating from VRR for short-term debt risk, according to the filing.

The filing, posted by the Superintendencia on December 10, shows that CFA’s net income through August 2018 rose to COP$4.77 billion (US$1.5 million), up from COP$3.99 billion (US$1.26 million) for the same period in 2017.

“The AA rating indicates a high capacity to pay interest and return capital, with a limited incremental risk compared to other entities or rated issues with the highest category,” according to VVR.

“On the other hand, the rating VrR1 corresponds to the highest category in investment grade, which indicates that the entity [CFA] enjoys a high probability in the payment of the obligations in the agreed terms and terms. The liquidity of the institution and the protection for third parties is good. Additionally, the ability to pay will not be affected by changes in the sector or the economy,” VVR added.

Among credit unions, CFA, founded in the year 2000, is ranked fourth by level of assets among the five financial cooperatives of Colombia, VVR noted.

The company mainly caters to lower-income and middle-income clients (strata 1, 2 and 3 in Colombia’s system of income rankings) and has most of its business here in Antioquia.

CFA has 10 main offices, 498 employees, and 68 correspondent offices in seven Colombian departments (states), and continues to expand throughout Colombia.

In total, 85% of the loan portfolio typically goes to salaried employees, commerce, transport and agriculture, according to the filing. The top-20 loan clients represented just 4.27% of the total portfolio, the filing shows.

During 2019, CFA plans to start-up the second phase of its cell-phone-based “Mobile channel,” which seeks to expand the transactional portfolio; complete the modernization and optimization of its “virtual office” platform; and continue with the development of its “Networks” project, according to the filing.

Written by November 23 2018 0

Medellin-based textile manufacturing giant Coltejer revealed in a November 22 filing with Colombia’s Superfinanciera regulatory agency that it has hired a consultant to develop a financial restructuring plan in order to pay liabilities.

According to the filing, the company also seeks a credit worth COP$12 billion (US$3.7 million) to buy cotton feedstocks for its manufacturing plants here.

The company, whose majority shareholder is Mexico-based textile multinational Kaltex, revealed earlier this month that it posted a net loss of COP$19 billion (US$5.88 million) for third quarter (3Q) 2018, compared to a net loss of COP$7 billion (US$2.2 million) in 3Q 2017.

For the first nine months of 2018, Coltejer has posted a net loss of COP$32.7 billion (US$10 million) versus a net loss of COP$27 billion (US$8.3 million) in nine-months 2017.

The company employs 1,245 workers at two plants in the Medellin suburbs, one at Itagui and the other in Rionegro.

Textile makers in Colombia for years have been hit hard by below-cost Asian imports including contraband, resulting in heavy financial losses.

Written by November 23 2018 0

Medellin-based multinational power and utilities giant EPM announced November 27 that its board adopted a full-year 2019 budget of COP$17.4 trillion (US$5.3 billion), which includes a COP$1.1 trillion (US$337 million) payment of profits to its sole shareholder: the city of Medellin.

Another COP$1.1 trillion (US$337 million) in 2019 will go for repairs and continuing build-out of its 2.4-gigawatt “Hidroituango” hydroelectric dam in Antioquia, according to the company.

Fully 50% of the funds for the 2019 budget will come from continuing revenues (COP$8.6 trillion/US$2.6 billion); another 22% via the sale of its 10% interest in Colombian power producer ISA as well as its Chilean power and water assets (COP$3.8 trillion/US$1.16 billion); 6% from its credit resources (COP$1 trillion/US$306 million) and the remainder from other operations, including COP$438 billion (US$134 million) via dividends from national and international subsidiaries, according to the company.

Production and marketing costs will account for 32% (COP$5.5 trillion/US$ 1.7 billion) of the 2019 budget, while debt service will take 21% (COP$3.6 trillion/US $ 1.1 billion).

Operating expenses will account for 19% (COP$3.3 trillion/US$1 billion) of the budget, including payments to the city of Medellin. Other investments will consume 18% (COP$3.2 trillion/US$ 978 million) of the budget, while the remaining 10% (COP$1.8 trillion/US$550 million) will go to cash reserves, according to the company.

Credit-Line Approvals

Meanwhile, EPM announced November 22 that it won line-of-credit approvals totaling more than US$1 billion from two sources: Colombian banking giant Bancolombia as well as three divisions of global banking giant HSBC.

The Bancolombia line-of-credit for COP$1 trillion (US$313 million) will “facilitate the continuation of our investment plans in public-service infrastructure,” according to EPM.

That line of credit carries a three-year repayment term. These funds “will only be used when EPM requires them within the next 24 months,” according to the company.

Meanwhile, Colombia’s Treasury Ministry simultaneously cleared the way for EPM to sign separate contracts with three divisions of banking giant HSBC for a line-of-credit worth US$750 million, according to the company.

“Of these resources, US$215 million will be used to finance the investment plan (2014-2022) of the company and US$535 million will be used for general corporate purposes other than investment,” according to the Ministry.

Of that total, US$650 million will come from HSBC Bank USA and HSBC México S.A., while the other US$100 million will come from Grupo Financiero HSBC. Loan term is three years from the signing, at a six-month LIBOR rate plus 2.75% per year, and a 30-month availability period starting from the date of contract signing, according to the Ministry.

These new lines of credit “complement the plan to sell some assets of the company,” including EPM’s 10% stake in Colombian power generator ISA as well as Chilean power-and-water utility holdings, according to EPM.

The asset sales and new credit lines respond to future financial challenges resulting from problems with EPM’s "Hidroituango” hydroelectric project here in Antioquia.

EPM general manager Jorge Londoño de la Cuesta added that “this financing allows the company to strengthen its liquidity alternatives -- when our cash-flow requires that -- in the next 24 months.”

Page 1 of 14

NEW GUIDE "Avifauna de Colombia" (link by clicking on book)

SILLETEROS PARADE 2016 by JOHN AND DONNA STORMZAND (click to enlarge)

Featured

Volunteering February 20 2017 0
As the late North American philosopher A.B. Johnson once quipped, “mighty oaks from little acorns…

About Medellin Herald

Medellin Herald is a locally produced, English-language news and advisory service uniquely focused upon a more-mature audience of visitors, investors, conference and trade-show attendees, property buyers, expats, retirees, volunteers and nature lovers.

U.S. native Roberto Peckham, who founded Medellin Herald in 2015, has been residing in metro Medellin since 2005 and has traveled regularly and extensively throughout Colombia since 1981.

Medellin Herald welcomes your editorial contributions, comments and story-idea suggestions. Send us a message using the "contact" section.

Contact US

logo def
Medellin Herald: Find news, information, reviews and opinion on business, events, conferences, congresses, education, real estate, investing, retiring and more.
  • COL (4) 386 06 27
  • USA (1) 305 517 76 35
  •  www.medellinherald.com 
  •  This email address is being protected from spambots. You need JavaScript enabled to view it. 
  • Medellin, Antioquia, Colombia

Medellín Photo Galery

Medellin, contrasting colors and styles by Gabriel Buitrago
MPGMPGMPGMPGMPGMPGMPGMPGMPGMPGMPGnav