CDPQ lends $250 mln to Colombian energy company EPM

Caisse de dépôt et placement du Québec has provided a loan of about $250 million to Empresas Públicas de Medellín, a Medellín, Colombia-based electricity producer and distributor. The loan, which forms part of a $1 billion facility led by IDB Invest, a member of the Inter-American Development Bank Group, will support EPM’s growth, including development of the Ituango Hydroelectric Project. The investment is CDPQ’s second in Colombia. Last October, the pension fund provided a senior loan to Pacifico 2, a toll highway sponsored by Odinsa SA.


MONTREAL, Jan. 11, 2018 /CNW Telbec/ – La Caisse de dépôt et placement du Québec (“CPDQ”), a long-term institutional investor, announced that it will support Colombia-based energy company Empresas Públicas de Medellín (EPM) with a US$250 million (CAD$313 million) loan. This transaction will contribute to EPM’s overall growth, notably the Ituango hydroelectric project, the largest renewable energy project in Colombia to date.

CDPQ’s investment is part of a US$1 billion facility. For this transaction, CDPQ joins a group of lenders led by IDB Invest, a member of the Inter-American Development Bank Group and the principal source of private sector development financing for Latin America, and including several other global financial institutions.

In Colombia, as in many other regions of Latin America, rapid urbanization has caused a shortage in electricity in densely-populated areas. As a leader in hydroelectric energy production, transmission, and distribution, in a region where hydroelectricity accounts for approximately 80% of the supply, EPM is working toward ensuring that the large demand is met while having a positive impact on market prices.

“We were highly motivated to participate in the financing of EPM, a leader in the markets it serves with an excellent reputation and extensive experience,” said Marc Cormier, Executive Vice-President, Fixed Income at CDPQ. “To benefit from the potential that exists in growing markets, CDPQ is looking for companies with attractive prospects and assets that contribute to local growth.”

“Financing a company such as EPM, that supports sustainable energy solutions, made this opportunity attractive to CDPQ,” added Anita George, Executive Vice President, Growth Markets. “This transaction demonstrates CDPQ’s approach of working with high quality partners such as IDB Invest and EPM to enter new markets. As we expand our global presence, CDPQ will continue to seek partners who share our long-term vision and are looking to build sound businesses in growth markets.”

EPM, which also operates in the natural gas, telecommunications, and water sectors, is CDPQ’s second Colombian investment within four months. In October 2017, CDPQ made its first direct private investment in Colombia, a senior loan to Pacifico 2, a toll highway sponsored by Colombian concessionaire Odinsa under the Colombian government’s PPP program for transport infrastructure.

Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2017, it held CAD$286.5 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt.

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