Bogota, Colombia, August 5, 2013—IFC,
a member of the World Bank Group, and two funds managed by the IFC Asset
Management Company have signed an agreement to make their largest-ever
equity investment in Colombia’s infrastructure, providing $150 million
for Pacific Infrastructure Ventures to support the growth in the country’s
oil and gas exports.
The equity investment will be provided by IFC; the IFC African, Latin American
and Caribbean Fund; and the IFC Global Infrastructure Fund to help
Pacific Infrastructure develop port, storage, and transportation facilities.
This will be a significant investment in a growing company. The
investment will improve the logistics of the Colombian oil and gas sector—and
strengthen the country’s infrastructure. Globally, it represents IFC’s
largest equity investment in support of a new infrastructure project.
“We are very excited to be joining efforts with IFC in the development
of our projects," said Juan Ricardo Noero, President and CEO of Pacific
Infrastructure. "IFC maintains high standards in corporate governance
and environmental and social performance. Its participation as a shareholder
in Pacific Infrastructure will be of great value as we continue to grow.
This investment is a testament to Colombia’s robust economic and business
environment, which allows the development of large-scale, greenfield initiatives
such as ours.” Inverlink S.A. acted as financial advisor to Pacific Infrastructure
for the structuring of this transaction.
In recent years, Colombia has increased oil and gas production but exports
have been constrained because of inadequate transportation infrastructure.
This equity investment will help Pacific Infrastructure develop two new
assets: Sociedad Portuaria Puerto Bahía S.A. and Oleoducto del Caribe–Olecar
Puerto Bahía is a new liquid import-export terminal on the bay of Cartagena,
one of the largest trade hubs in Latin America. It is designed for an initial
storage capacity of 3.3 million barrels of crude oil and hydrocarbon products.
The total facility comprises 140 hectares and is expected to include a
general cargo handling area, as well as an industrial free-trade zone.
Olecar is a 130-kilometer crude oil pipeline, which will connect Puerto
Bahía’s facilities with Colombia’s principal crude export terminal in
Coveñas, located on the Caribbean coast. It will also include a direct
connection between Puerto Bahía and Refineria de Cartagena – Reficar.
“Oil exports represent half of Colombia’s total exports and are highly
vulnerable to the country’s dependence on a sole terminal,” said Irene
Arias, IFC’s Manager for the Andean Region. “This investment will reduce
bottlenecks and help producers access international markets more efficiently.”
“As the first investment made by the IFC Global Infrastructure Fund, we
are pleased to partner with the ALAC Fund and IFC to work with a growing
company that plays a significant role in the development of a crucial sector
of the Colombian economy,” said Darius Lilaoonwala, head of the IFC Global
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit
About IFC Asset Management Company
IFC Asset Management Company LLC, a wholly-owned subsidiary of IFC, invests
third-party capital, enabling outside investors to benefit from IFC’s
expertise in achieving strong equity returns, as well as positive development
impact in the countries in which it invests. It manages over $5.5 billion
of capital across six investment funds.
About the IFC African, Latin American and Caribbean Fund
The IFC ALAC Fund is a $1 billion investment fund that invests alongside
IFC in equity investments in Sub-Saharan Africa, Latin America and the
Caribbean. It provides long-term growth capital for private enterprises
in these regions.
About the IFC Global Infrastructure
The IFC Global Infrastructure Fund invests
alongside IFC in equity and equity-related investments in infrastructure
projects and companies in emerging markets.