Fitch: New Shareholders will Enhance FDN's Project Finance Funding Capability

Tue Apr 8, 2014 9:41am EDT

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(The following statement was released by the rating agency) NEW YORK/BOGOTA, April 08 (Fitch) Fitch Ratings views the entry of the International Financial Corporation (IFC) and the Corporacion Andina de Fomento (CAF) as shareholders of Financiera de Desarrollo Nacional S.A. (FDN) positively. With the capitalization of USD120 million (USD70 million from IFC and USD50 million from CAF) these supranationals will have a stake of approximately 30% of FDN. This transaction also strengthens FDN's capital and will enhance its capacity to mobilize resources to meet the financing requirements of infrastructure projects in Colombia. Currently, FDN is a fundamental part of Colombia's infrastructure investment agenda in terms of 4G concessions, energy, transportation, and financing other long-term projects. This capital infusion will help the company face the new challenges derived from the widening if its social objectives and the diversification of portfolio products (Decree 4174/11). FDN is developing new credit solutions that will permit the financing of infrastructure projects at all stages of development and will improve the credit risk of these projects. This will facilitate the entrance of private banks and other financing institutions as well as provide more favorable financing conditions. Fitch continues to monitor FDN's credit portfolio, balance sheet structure, funding requirements, and credit risk administration and appetite, crucial factors for the sustainability of the entity. For additional information on FDN's ratings see 'Fitch Afirma en 'AAA(col)' y 'F1+(col)' las Calificaciones Nacionales de Financiera de Desarrollo Nacional S.A.; Perspectiva Estable', published Friday, March 21 2014, and available at www.fitchratings.com. Contacts Sergio Ivan Pena Director Asociado +57-1-326-9999 Ext 1160 Fitch Ratings, Inc. Calle 69A Bogota - Colombia Gilberto Andres Sanchez Cortes Analista +57-1-326-9999 Ext 1980 Bogota - Colombia Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: elizabeth.fogerty@fitchratings.com. Additional information is available at 'www.fitchratings.com'. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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