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Darby, the private equity arm of Franklin Templeton Investments, was joined by three co-investors in the acquisition
Bogotá and Washington, DC, April 1, 2014 - Darby Private Equity ("Darby"), the private equity arm of Franklin Templeton Investments, announced today that its Colombian-based Fondo de Infraestructura de Transporte de Colombia ("FINTRA"), together with two co-investors, acquired 5% of Oleoducto Central S.A. ("OCENSA") and 5% of the pipeline's transportation rights from Pacific Rubiales Energy Corp.
Ocensa is Colombia's longest oil pipeline and runs 836 km from the Los Llanos Basin to the port of Coveñas located in Colombia's northern coast. The pipeline's current pumping capacity is 590,000 barrels per day and expansion plans are underway to reach 725,000 barrels per day in the medium term.
The investment in OCENSA continues Darby's 20-year track record that includes over 55 investments in the region.
"OCENSA is one of the crown jewels of Colombia's infrastructure assets and will play a critical role in increasing the country's oil export capacities in the following years. Having led the acquisition of a stake in OCENSA is evidence of Darby's capabilities to identify, structure, and finance large infrastructure investments. We are very pleased to have led this deal, which is a milestone for FINTRA", said Maria Mercedes Prado, Darby's Managing Director responsible for FINTRA.
Darby has played a pioneering role in investing in emerging market regions, initially Latin America, then Asia, and most recently Central and Southeastern Europe.
Darby Private Equity was founded in 1994 by The Honorable Nicholas F. Brady, who served as U.S. Secretary of the Treasury between 1988 and 1993. Richard Frank joined the firm as CEO in 1997 after his career at the International Finance Corporation (IFC)/World Bank. In 2003, Darby became a fully owned subsidiary of Franklin Resources, Inc. [NYSE:BEN], a global investment management organization operating as Franklin Templeton Investments. For more information please visit darbyoverseas.com.
Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Bissett, Fiduciary Trust, Darby, Balanced Equity Management K2 Advisors and Pelagos investment teams. The San Mateo, CA-based company has more than 65 years of investment experience and over $882 billion in assets under management as of February 28, 2014. For more information, please visit franklintempleton.com.
Founded in 1994, OCENSA is the largest oil pipeline in Colombia and constitutes the backbone of the country's oil transportation system with 836 km of pipeline, 19 storage tanks, and an exclusive tanker loading unit in the maritime terminal at Coveñas, Colombia's most important oil & gas port, with a pumping capacity of 60,000 barrels per hour.
FINTRA is a Colombian-based infrastructure fund managed by Darby-Colpatria Capital S.A.S., a joint venture between Darby and Grupo Colpatria. OCENSA is FINTRA's second investment in Colombia since its inception. In 2013, FINTRA acquired a minority stake in Intertug, one of the region's leading tug boat companies with operations in Colombia, Mexico, Venezuela, Brazil and Central America.