IFC commits $48m to Colombian infra debt fund

After saying it would invest $100m in FCP 4G in September, the World Bank affiliate has come back with a more conservative pledge to the vehicle.

An infrastructure debt fund launched in September by a pair of Colombian firms has received $48 million from the International Finance Corporation (IFC). 

The Fondo de Inversion FCP 4G (FCP 4G), which will be managed jointly by Sura Asset Management (SUAM) and Credicorp Capital Holding Colombia through a 50-50 partnership, is described by founders as an infrastructure-focused collective debt vehicle focused on providing senior debt financing to toll road projects in Colombia. 

When it was launched, the fund was targeting a first close of COP$1.5 billion (€433 million; $482 million) with a hard target of COP$2 billion. Now, however, IFC reports that the fund is seeking a more conservative first close target of $400 million. 

The World Bank subsidiary's commitment is meant to mobilise financing from pension funds, “a mostly untapped source of capital for infrastructure projects in emerging economies”, according to a statement. 

“This investment will be instrumental in providing infrastructure finance and development capital markets in Colombia,” said Carlos Leiria Pinto, IFC's head for the Andean region. “The new fund will help address one of Colombia's most crucial challenges and our investment reflects IFC's focus on unlocking more financing for urgently-needed infrastructure upgrades in emerging economies.” 

Prior to its $48 million commitment into the FCP 4G fund, IFC helped launch Financiera de Desarollo Nacional in 2014, a programme that helps funnel capital into infrastructure projects. 

In related news, Latin American development bank Corporacion Andina de Fomento (CAF) and emerging markets fund manager Ashmore Group recently closed Colombia's first-ever infrastructure-focused senior debt fund on $451 million, drawing investments from the nation's top three pension investors. 

IFC also aided the Colombia government in its structuring of auctions for the 4G roads programme. According to the institution, Colombia will require roughly $24 billion in capital to realise its ambitious road development goals.