Cubico Sustainable Investments (Cubico), a leader and global investor in renewable energy, has entered the transmission lines market through the creation of Caoba Inversiones (Caoba) in Colombia.

Caoba is a transmission line platform owned by Cubico and Colombian power developer Celsia Colombia (Celsia). The portfolio includes operational assets in Tolima and the Caribe region, with around 1,500 km in transmission lines and 85 substations.

It provides a great opportunity for growth in the coming years, which should help to tackle Colombia’s electrical power infrastructure needs.

The total amount of non-recourse project finance debt raised was EUR 340 million, exclusively with Scotiabank and Export Development Canada.

Cubico will perform asset management activities for the portfolio, while Celsia will continue with its commercial representation, as well as providing operations and maintenance services. Both companies are committed to guaranteeing the same levels of excellence which characterise their current operations.

Caoba is the second transaction to be closed by Cubico and Celsia in Colombia, following the strategic joint venture for the development, construction and operation of more than 400 MW of medium and large-scale solar projects, which started last year.

Ricardo Díaz, Head of Americas at Cubico, said: “We are very pleased with our partnership with Celsia in Colombia; this additional transaction is clear evidence of the synergies and good fit between our companies.

“This is our first investment in transmission lines globally, showing the flexibility and capability of Cubico to grow its portfolio through value accretive transactions. We will now focus on growing our existing platforms and continuing to look at the right opportunities in the sector.”

Francisco Moya, Head of Brazil and Rest of Latam at Cubico, added: “The investment in Caoba reinforces our commitment to the development of green energy in Colombia and will allow us to occupy a leadership position in the country’s energy sector.

“The successful closing of this financing in the middle of the current global crisis demonstrates again the resilience and strength of our Latam team.”