Colombian infra debt fund targets $500m first close

FCP 4G, in which IFC is considering investing up to $100m, will provide senior debt financing to toll road projects in the country.

A new infrastructure debt vehicle managed by two Latin American firms is aiming for a first close at about $500 million.

Fondo de Inversion FCP 4G Credicorp Capital/Sura Asset Management (FCP 4G), as the fund is dubbed, could receive an capital injection of up to 20 percent of total commitments from the International Finance Corporation (IFC), according to a note on the World Bank subsidiary’s website.

The institution describes the fund as an infrastructure-focused collective debt vehicle focused on providing senior debt financing to toll-road projects in Colombia. It also states that FCP 4G is targeting a first closing at COP$1,500 billion (€433 million; $482 million), with a maximum set at COP$2,000 billion.

“Debt funds are a nascent asset class in Colombia and an IFC investment is expected to have a positive demonstration effect by raising awareness and ultimately mobilising needed resources for infrastructure investments,” IFC says on its website.

The fund will be managed jointly by Credicorp Capital Holding Colombia (Credicorp Capital) and SURA Asset Management (SUAM) through Unión para la Infraestructura, a fund manager in which both firms each own a 50 percent stake.

Medellin-headquartered SUAM claims to be the largest pension management firm in Latin America, with operations in Mexico, Peru, Chile, Colombia, Uruguay and El Salvador. It is a subsidiary of Grupo de Inversiones Suramericana, an investment company listed on the Colombian Stock Exchange. SUAM also counts IFC, Bolivar Group, Bancolombia, General Atlantic, JP Morgan and Wiese Group as minority shareholders.

Credicorp Capital is an advisory business active in Peru, Colombia and Chile. It is a subsidiary of New York-listed Credicorp, a financial services conglomerate incorporated in Bermuda and based in Lima, Peru. Credicorp owns Banco de Credito del Peru, the country’s largest bank.