Credicorp Capital Colombia S.A. is a financial holding company that provides asset management, banking, investment strategies and advisory services. It serves customers in Chile, Colombia, Peru, the USA and the UK. Wanda Rich, editor of Global Banking & Finance Review, recently interviewed Ana María Giraldo, Executive Director of Corporate Finance for Credicorp Capital Colombia, and they first discussed the company’s role in financing the first social infrastructure in Colombia under the Public-Private Partnership (PPP) scheme, through the availability of COP 260,000 million.
“Credicorp Capital acted as financial advisor of Grupo Ortiz, to participate in the public process to award the concession and later the obtention of the financial closure of the project,” Ana María said. “Hospital de Bosa represents the first social infrastructure project awarded under a Public-Private-Partnership (PPP) structure in Colombia, which is evidence of the importance of this contract mechanism to boost the development of this kind of infrastructure in the country.
“The project had to overcome several challenges, the Bogota’s District Health Secretary was needed to interact with the concession contract, and the risk assignments of the project. Fortunately, the project had a well-structured framework and a sound payment source that caught the attention of lenders and allowed the structuring of the financing.”
Credicorp has executed numerous complex transactions over the years which, as Ana María explained, were made possible by the expertise of the advisory team. “Our Corporate Finance team, which supports the transactions in which we are involved, is composed of a group of around 60 professionals based in Colombia, Peru and Chile, with extensive experience to advise our clients in all the products we offer: M&A, capital markets, loans and project finance,” she said. “To successfully manage complex deals we offer our clients a complete and close advisory, supported by deep knowledge of the markets and products, and oriented through methodologies and well-defined processes. Our deal-oriented team is in charge of all the financial structuring and coordinating of the different parties involved in the transaction.”
Recent years have brought on innumerable obstacles to be overcome, and minimising operational risk in that period has been paramount to Credicorp Capital. “The challenges faced by the global economy in the last years have changed the way the labour market acts and exposed new risks, but also big opportunities,” Ana María explained. “The adoption of technologies to support operations, and the adaptations to new work alternatives such as telecommuting, have been very important for Credicorp Capital during this time to manage operational risk.”
As far as social economic development is concerned, she is clear about the role the finance sector has to play. “Financial institutions must be conscious of their big impact on the social development of the economy,” she said. “The financial sector has been crucial in supporting the development of projects with a big impact in terms of the construction of infrastructure, energy transition, financing of social projects, among other aspects. Every day sustainable finance gains more strength, and through the promotions of these kinds of initiatives our sector is contributing to the social development of our countries.”
Ana María concluded by outlining Credicorp Capital’s plans for the next year. “We are prepared to support our clients to navigate through turbulent times due to a complex global economic context and political changes. Our value offer is oriented to identify investment opportunities and analyse, structure and execute those opportunities. In corporate finance particularly, we expect to find opportunities in sectors such as agriculture, infrastructure and energy.”