EPM Signs Second Loan Contract with French Development Agency
- Fecha de publicación
- 2023-03-16 00:00
- Contenido
-
- The French Development Agency granted a loan to EPM amounting to 189.8 million dollars, reaffirming its trust and endorsement of the Company
- The resources from this transaction will be intended for the partial financing of the Investment Plan in the Water, Cleaning and Energy segments
- With these investments, EPM seeks to contribute to the well-being of the community with public utilities with quality, continuity, coverage and availability
EPM signed its second loan agreement with the French Development Agency (AFD) amounting to 189.8 million dollars, intended for the partial financing of the Investment Plan in the Water, Cleaning and Energy segments: photovoltaic energy production, energy efficiency in power transmission and distribution networks, rural electrification and public lighting.
Jorge Andrés Carrillo Cardoso, CEO of EPM, indicated that “this transaction demonstrates the support of international development banking for our Company, which is committed to transforming the lives of the community by providing public utilities, developing the territories and caring for the environment.”
On his part, Frédéric Doré, French ambassador in Colombia, said “this is the second loan operation we have granted EPM, adding up to 500 million dollars intended to improve water and power infrastructures, and their efficiency and productivity, in order to favor the population’s access to basic services and strengthen the operation of one of the Country’s most important public companies.”
Conditions of the Loan
The term of the granted loan is 10 years, including a three-year grace period, in financial conditions defined based on the SOFR, plus the spread. In addition, the French Development Agency will offer resources for technical cooperation, support, accompaniment and advising to EPM on various topics, among which is strengthening an action plan for the continuity of activities in closing gender equality gaps and promoting Non-Conventional Renewable Energy sources (NCRE).
Signing this loan operation included the favorable opinion of foreign debt from the National Planning Department of Colombia, and was authorized by means of a resolution of the Ministry of Finance and Public Credit of Colombia.
EPM’s first loan agreement with the French Development Agency, signed August 2012, consisted of a public credit operation amounting to 338 million dollars, intended to finance growth and expansion projects related to the Energy and Gas Generation, Transmission and Distribution segments.
In this operation, the French Development Agency also provided backing through technical cooperation for support, advising and the transfer of knowledge to EPM to leverage and strengthen environmental initiatives, mainly with respect to climate change and biodiversity strategies.
The French Development Agency is a public financial institution committed to financing policies, programs and projects that improve the quality of life of populations in developing countries and fulfilling the Sustainable Development Goals (SDGs) and the Paris Agreement.