CAF, Ashmore raise $451m Colombian debt fund

The pioneering vehicle, backed by local pensions and insurers, is already eyeing five projects from the country’s $25bn 4G roads programme. 

Emerging markets fund manager Ashmore Group and Latin American development bank Corporación Andina de Fomento (CAF) have raised COP1.4 trillion ($451 million; 426 million) from local institutional investors for the Colombia's first-ever infrastructure senior debt fund.

The pioneering vehicle attracted COP920 billion from the country's three largest pension funds – Porvenir, Colfondos and Protección – and COP208 billion from insurers Suramericana and Old Mutual. Development institution Financiera de Desarrollo Nacional (FDN), the vehicle's first limited partner, committed COP50 billion, with Ashmore and CAF, which kick-started the raise with a $50 million cornerstone investment, rounding out the total.

The debt vehicle will be able to take construction risk and lend up to 25 years. It will focus on Colombia's $25 billion 4G roads programme and is already eyeing loans to five projects.

In a presentation, the government suggested three other debt funds might be announcing closings in the near future, taking total private debt capital raised to COP4 trillion. An earlier FDN document showed debt funds being raised by Credicorp/Sura Asset Management, Exponencial and BTG Pactual.

In May, Infrastructure Investor reported that CAF was preparing to raise a $500 million Uruguayan infrastructure fund.