EPM sell-off not privatization, says CEO

Thursday, September 13, 2018

The CEO of Colombian multi-utility EPM has insisted that the company's Latin America-wide divestment plans do not equate to privatization.

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EPM is aiming raise up to 4tn pesos (US$1.3bn) from asset sales to guarantee the future of its troubled Hidroituango dam project.

The Medellín city council, which owns EPM, is expected to decide whether to approve the divestment process in October.

"The sale of assets doesn't mean in any way that EPM will lose its status as a 100% public company," EPM chief executive Jorge Londoño said in a filing with Colombia's financial regulator Superfinanciera.

"The Medellín council and the entire community can have complete peace of mind in this aspect and also the assurance that we are doing everything possible to... ensure the correct provision and quality of services," it added.

Meanwhile Fitch Ratings said it maintained EPM's investment grade credit rating despite citing uncertainty surrounding the future of Hidroituango.