Colombia’s Termo Caribe secures $42m financing

The financing was provided by MUFG Bank and optimized the financing structure that had been granted to Termo Caribe in 2022, ensuring the operational efficiency of this thermal power plant, which contributes 57MW to the Colombian energy system.

This financing highlights the strength of the energy market's regulatory framework, with a special emphasis on those assets that provide greater reliability to the sector. Likewise, MUFG Bank positions itself as a leading financier in the power generation sector in Colombia and Latin America, according to law firm Cuatrecasas, which advised MUFG Bank on the transaction.

"We would like to thank the teams at MUFG Bank and Termo Caribe for trusting Cuatrecasas to accompany them in this transaction,” the law firm said.

“This is undoubtedly a strategic financing that strengthens a key asset for the stability of the Colombian electricity system, particularly in a context of increasing hydrological volatility," said Natalia Arango, partner at Cuatrecasas, who led the advisory team, with the collaboration of attorneys Santiago Jaramillo and Laura Valencia from the finance practice.