Mandate Letter BID - FDO - Ocr PDF

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SIDB Invest

February 10, 2020

MANDATE LETTER

Electribus Bogotå Usme SAS.


Electribus Bogotå Fontibon S.A.S.
Carrera 7 # 75 - 66, Oficina 702
Bogotå, Colombia

Ladies and Gentlemen:

The Project.ElectribusBogotåUsmeS.A.S.andElectribusBogotåFontibonS.A.S.,two
specialpurposeCompaniesorganizedunderthe laws of Colombia(the "Companies"),and its
s
shareholder
Ashmore
Andean
FundII, FondoAshmore
AndinoII, andSOMOS
K SA. (collectively,
the "Sponsors")are seekingfinancingto acquire,operateandmaintaintwo fleetsof electricbuses
consisting
inatotalof 14650-passenger
buses
and1380-passenger
buses(the"Project").
2. The Mandate. The Companiesandthe Sponsorsmandatethe Inter-AmericanInvestment
Corporatio("lDB Invest")to leada financingfor theProjectin anamountof approximately
n one
hundredninety three thousandsevenhundredforty six million ColombianPesos(COP
0)
193,746,000,00 on thetermsandconditions setforthin this letter(the"MandateLetter").This
MandateLetterconfirmsthatIDB InvestandtheInter-American DevelopmentBank("IDB") will
r
conside
participating
inthefinancing
oftheProject,
intheformsetforthinsection
3below,subject
to
satisfactory
resultsof [DB Invest'sanalysisof theProjectandsatisfaction
of theconditionsdescribed
herein.Thetermsandconditions
ofthefinancing
(including
appropriate
representations
andindemnities
with respectto thefinancing)will benegotiated
simultaneously
with IDB Invest'sreviewandinitial
analysis of the Project.

FinancingStructure.It isanticipated
thatthefinancing
will consistof:(a)twoA Loans(the
"IDBA Loans")
foranaggregate
amount
of uptosixtyfourthousand
fivehundred
eightytwomillion
Colombian
Pesos(COP64,582,000,000),
eachto befundedby [DBInvestand[DB in aratioto be
determine(b)twoA Loans
d, (the''Proparco
Guaranteed A Loans")
foranaggregate
amount ofupto
sixtyfourthousand
fivehundredeightytwomillionColombian
Pesos (COP64,582,000,000),
eachto
befunded byIDBInvestandIDBinaratiotobedetemined andtobeguaranteed
byProparco,and(c)
aco-
loan fromtheFinanciera deDesarolloNacional(the"FDNI-oarf')ofapproximately
sixtyfour
d
thousan fivehundredeightytwomillionColombian pesos(COP64,582,000,000)
(a),(b)and(c)
jointly,the"Financing").
TheIDBA LoansandtheProparco Guaranteed
A Loanscouldbeincreased
uptotheamount of theFDNLoanshouldFinanciera
deDesarolloNacional
decidenottomoveforward
withthetransaction;provided,however,
thattheaggregate
of the[DBA Loansshallnotbemorethan
33%of totalprojectcost.Additionally,
II)B Investwill workwiththeCompanies
to explore
s
opportunitie
to mobilizeconcessional
financingfromtheUnitedKingdomSustainable
Infrastructure
Programs(the "UK SIP").

4.
Debtto Equityratio.It isexpected
thattheFinancing
andeventually
anyfundsfromtheUK
SIPwill beequalor lowertothe70%of totalprojectcosts.

5. LegalExpenses.
ThisMandate
LetteralsosetsforththebasisonwhichIDBInvestwill work
withtheCompani
es toprepare
theproposed
financing.
TheCompanies
willpaythereasonable
legal
s
expense
of lawfirmsthatmayberequired
byIDBInvestinconnection
withtheduediligence
review

1350 New York Ave. N w • Washington, DC 20577 • USA


oftheProjectandwiththepreparation,
drafting,
negotiation
andclosing ofthefinancing
documents and
anyotherrelated
documents,whetherornotthefinancingisconsummated. [DBInvestwill require
the
s
Companie to approvefroma selection
of theU.S.andColombian lawfirmsto beengaged by[DB
Investin connection
withthistransaction.
These legalexpenses
will bebilledseparatelyandwill be
payable
in UnitedStatesdollarsbyor onbehalfof theCompanies,
subjectto thepresentation
of the
sinvoiceandtheirapproval
byanauthorized
representative
of[DBInvest. IDBInvest,
theCompanies,
theSponsor
s andthelawfinnsselected
byIDBInvestshallenterintooneor moreengagement
s
agreement
(each,a"Retainer
Agreement"),
establishing
theapplicable
feesandapayment
mechanism
forthesame.
II)BInvestwill exercise
goodfaitheffortstoensure
thatthelegalservices
andexpenses
arereasonable,
efficientandintegratedwith theCompanies'legalservices.
6.
Consultants.
In addition,
theCompanies shallpayall reasonable
costsandexpenses
of any
,
technical
,
insurance
taxandmodelauditingconsultants
oranyotherconsultants
thatmayberequired
byIDBInvestinconnection
withthefinancing
oftheProject.
IDBInvest,theCompanies,theSponsors
andeachsuchconsultant
selected
by [DB Investshallenterintooneor moreagreements
(each,a
"ConsultantAgreement")establishing
theapplicablefeesandapaymentmechanismfor the same.IDB
Investshallrequest
approval
fromtheCompanies
priortomakingtheselection
oftheexpertconsultants.

AnalysisFeeand Reimbursement
of Expenses.
prior to IDB Investinitiatingtheanalysis
process,the Companiesshall delivera duly executedcopy of this MandateLetterto IDB Invest.In
n
connectiowiththistransaction,
theCompanies
shallpayto [DBInvestananalysis
fee(the"Analysis
Fee")intheamountof onehundredandfifty thousand
UnitedStatesdollars(USS150,000).
Thisfeeis
non-
refundable andwill notbereturned
irrespectiveofwhether
ornotIDBInvest,[DB,theCompanies,
theSponsorsortheirrespective
shareholders
electto proceed
withIDBInvestorIDWsparticipation
in
thefinancing
of theProject.
Theamount oftheAnalysisFeecanbedeductedfromthepayment of any
feeduein connectionwiththeclosingofthefinancing.TheAnalysisFeeshallbepaidby oronbehalf
oftheCompanies in UnitedStatesdollars,in accordance
withIDB Invest'spayment
instructions,
in one
installment
withintendaysof execution of thisMandateLetter.TheCompaniesshallalsopayto IDB
Invest(or as IDB Investmay direct) anyout-of-pocketexpenses(including travel,subsistence
and
communicationexpenses)andany dataroom expensesincurred by IDB Invest in connectionwith the
proposedfinancing,payableuponreceiptof a statementof thoseexpensesfrom II)B Investup to a
maximum of seven thousand five hundred United States dollars (US$7,S00). In addition, the
transaction's
summaryindicativetermsandconditionsshallincludeotherfeesandexpenses
pertaining
to thistypeof transaction.
All payments
hereundershallbemadewhendue,netof anytaxes,charges,
withholdingsorotherdeductionswhatsoever
inUnitedStates dollarsorColombianPesos,
asapplicable.

CoordinationFeeandOthers.TheCompanies agreeto payto IDB Investatfinancialclosing


of the Financinga feeequalto 50bpsof thetotal Financing.Otherfeesandpremiumspayableto IDB
Investin connectionwith thisProject,includinglatepaymentfeesandinterestratespayableunderthe
Loan, will be determined prior to financial close.

9. Conditions for Commitment. Any determinationby IDB Investto participatein the financing
of the Projectshallbeconditioneduponall of the following,to the satisfactionof [DB Invest:(i) the
completionof the analysisprocess;(ii) the structuringandnegotiationof a financial plan for the
financingof theProject;(iii) thenegotiationof terms,conditionsandarrangements for theparticipation
of IDB Invest andIDB in the Project;(iv) formal approvalby IDB Invest's Managementand Board of
ExecutiveDirectors;(v) negotiationandexecutionof appropriatefinancingandsecuritydocumentation;
and(vi) paymentof all reasonablelegal andotherconsultantexpensesincurredby [DB Invest through
such date, in accordancewith this MandateLetter, each Retainer Agreement and each Consultant

2
10. InformationDisclosure.TheCompanies
andtheSponsors
agreeto cooperate
fully withIDB
Investin the performanceof its lesponsibilitieshereunder.The Companiesandthe Sponsorsfurther
agreeto provide[DB Investandthe Arrangerwith suchinformationrelatingto the Project,the
Companies,theSponsorsandtheirrespectiveshareholders,includingwithoutlimitationaninformation
packagefor deliveryto potentialparticipantsas deemednecessaryby the Arrangerandsuchother
informationandfinancialprojectionsasIDB Investreasonably
mayrequest,all ofthe foregoingsubject
to customaryconfidentiality agreements.The Companiesandthe SponsorsalsoauthorizeIDB Investto
shareanyandall informationlelatedto theProjectwith the[DB. TheCompanies
andtheSponsors
furtherauthorize
IDBInvestandtheArranger
to share
anyandallinformation
related
totheprojectand
authorize[DB Investto provide,throughtheArranger,suchinformationtothepotentialparticipants
in
thefinancingof theProjectas[DBInvestdeems
appropriate
afterpriorclearance
bytheCompanies.
Eachof the Companiesandthe Sponsorsacknowledges
that, in performingserviceshereunder,IDB
Invest,theIDB andanypotentialparticipants in theLoanswill rely uponinformationrelatingto the
Companies, theSponsors andtheProjectfurnished tothembytheCompanies andtheSponsors andthat
the Companiesandthe Sponsorsshallbe responsible for the accuracyof suchinformation.The
Companies andeachoftheSponsors herebyrepresentsandwarrants thatanywrittenororalinformation
providedby it to IDB Invest,itsrepresentatives
or itsadvisorsbytheCompanies, itsaffiliatesorother
s
representative
or advisors
relatingtotheCompanies,
theSponsors
ortheProject,
will notcontainany
untruestatementof materialfactor omit anymaterialfactnecessary
to supportstatements
thereinand
to makesuchstatementsnot misleading.

11. No Commitment. Eachof IDB Invest,theCompanies andtheSponsors


acknowledges and
agrees
thatexecution
of thisMandate Letterorpayment
of anyfeesmentioned
hereindoesnotrepresent
acommitment
onthepartof IDB InvestorIDB toprovidefinancingtotheProject.

12. NoLiability.NoneofIDBInvest,[DBortheArranger shallhaveanyliability(intort,contract


or otherwise)
to theCompanies or theSponsorsor to theirrespective
shareholdersor to anyof their
e
respectivdirectors,
officers,employees,
agentsor representatives,
for anyclaims,liabilities,losses,
,
damages costs,proceedings,penalties
or expensesarisingoutof anyactor omission of [DBInvest,
IDB or the Arrangerin relationto theproposed financing,performing their respective services
hereundeotherthananysuchclaims,liabilities,losses,
r, damages,
costs,proceedings,
penalties
or
s
expense
arisingfromtheirowngrossnegligence or willfulmisconduct
asdeterminedbythefinal
judgment of a court of competentjurisdiction.

13. Indemnity.TheCompanies
herebyagree
to indemnify
andholdharmless
IDBInvest,theIDB
andthe Arrangerandtheir respective directors,
officers,employees, shareholders,
agentsand
es
representativ
(each,an"IndemnifiedParty")fromclaims,liabilities,
losses,
costs,
damages,penalties,
s,
judgmentsuitsorexpense
s (including allreasonable
legalorotherexpenses)
arising
outofanyactor
n
omissioof IDBInvestin performing itsservices
hereunder,excludinganysuchclaims,liabilities,
,
losses
,
damages or expensesarisingfromtheIndemnified Party'sowngrossnegligenceor willful
misconduct
asdeterrnined
bythefinaljudgment
of acourtof competent
jurisdiction.

14. Termination. Thearrangement


described
inthisMandate Letterwill besuperseded
bythe
t
relevan
provisions
of thefinancing
documentation,
if any,signed
bytheCompanies andIDBInvest.
Unlessotherwise
extended
in writingby mutualagreement
of theparties,thisMandate
Lettershall
terminateontheearliertooccurofthefollowingdates:(i) 4 monthsaftertheexecution
of thisMandate
Letter,or(ii) thedateof theexecution
of definitivedocumentation
evidencing
thecommitment
of II)B
tInvesandIDBtoprovide financing
totheCompanies. If theCompanies
failtoclosetheFinancing
e
despitIDBInvest'ssuccessinobtaining
creditapproval, thentheCompanies
shallpaytoIDBInvest,
inaddition
toallfeesandotheramountsalreadypaid,(i) allearnedbutunpaid
reimbursable
costsand

3
expenses
pursuanthereto,and (ii) if the Companies
andSponsorunilaterallywithdrawfrom the
,
Financing
abreak-up
feeoftwohundred
thousand
UnitedStates
dollars
(US$200,000).
15.
Survival.It isexpressly
agreed
thattheprovisions
ofparagraphs
5,6,7, 12,13,16,17,1819,
and20of thisMandateLettershallsurviveanyterminationof thisMandateLetter.

16. LawandJurisdiction.ThisMandate
Lettershallbegoverned
by andconstrued
andenforced
in accordance
with thelawsof theStateof NewYork, UnitedStatesof America.

17. Anti-FraudandAnti-Corruption.
[DBInvestandIDBstrivetoprevent
fraudandcorruption
in theiractivitiesandtakeseriousactionin response
to allegations
of suchconduct.
In additionto
contractual
remediesfor fraud,corruptionandothersanctionable
practices,[DB InvestandIDB's
administrativ
e debarmentprocessapplies
toIDBInvestand[DBprojects
andcounterparties.
TheIDB
Group,
andcertainothermultilateral
development
banksCMDBs")alsohaveentered
intoarrangements
underwhichit is expected
that,asa generalmatter,debarment
by oneparticipating
MDBwill be
recognizedby the otherparticipatingMDBs. Detailedinformationaboutthe sanctionsanddebarment
framework can be found on IDB Invest's website
transparency).

18.
Exclusivity.Fortheterm(asestablished
inSection
14),neithertheCompanies
northeSponsors
shallenterintoanymandateorengagement
with,oraward
anytitle,roles,orcompensation
to,anyother
financial
institution
orfinancial
advisor
in connection
withfinancing totheProject,
orengagein any
similarattempt
to raisedebtorfinancing totheProject.
TheCompanies furtheragrees
thatit shallnot,
andshallcauseitsaffiliatesnotto discuss
anypotential
financing
totheProjectortheCompanies with
anythirdpartiesandit shallpromptlynotiWIDBInvestif it receives
anyinquiryconcerning
any
potentialfinancingto theProjectortheCompanies.

19. Third party BeneficiaryRights.TheCompanies


andtheSponsors
acknowledge
andagree
thattheIDB,theArrangerandeachIndemnified
Partyareintended
tobethirdpartybeneficiaries
of the
provisionsof this MandateLetteraffecting them.

20. Counterparts.Thisagreementmaybeexecuted in anynumberof identicalcounterparts,


each
of whichwhentakentogethershallconstitute
oneoriginalagreement.

Kindlyarrangefor theCompaniesandeachof theSponsors to haveanauthorized signatorysignone


enclosed
originalof thisMandateLetterandreturnit to IDB Invest,to indicatetheagreement of the
Companiesandthe Sponsors, respectively,with thetermsandconditionsdescribedherein,effectiveas
of thedatefirst setforthabove.We lookforwardto continuingto work with you in theweeksahead.

Yours sincerely,

INTER-AMERICAN INVESTMENT CORPORATION

Felipe EzquerraPlasencia
Infrastructure & Energy Division Chief

4
We agreewith thetermsandconditionsdescribedherein.Werepresentandwarrantthatall consents,
permitsandapprovals
requiredto signthisletteronbehalfof theCompanies
andeachof theSponsors
and to make any payments hereunder have been obtained.

ELECTRIBUS BOGOTÅ USME S.A.S. ELECTRIBUS GOTÅ NTIBON S.AS.

Title: Title:

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