Sumitomo Mitsui Banking Corporation (SMBC) will acquire from International Finance Corporation (IFC) 8.8% of the total issued and outstanding shares of Financiera de Desarrollo Nacional S.A (FDN).
SMBC will nominate a Director as a member of FDN's Board of Directors.
FDN is a development bank created by the Colombian government in 2011 with the objective to manage and stimulate the financing & structuring of the key infrastructure projects in Colombia.
FDN's top priority is to support the fourth generation road concessions program (4G) through its services such as financing, guarantee, and advisory, the entity will also focus on other important power and infrastructure projects in the mid-to-long term.
SMBC signed a memorandum of understanding (MOU) on business cooperation with FDN in July 2014. Under the MOU framework, SMBC and FDN have been closely exchanging information, expertise, and personnel in order to develop finance structures suitable to the country's major infrastructure projects and also diversify finance sources.
SMBC, as the sole private investor of FDN, will further collaborate with FDN to offer know how in infrastructure finance and bring into the market products & services that will contribute to the country's strong economic and social development.