URUGUAY: Inter-American Development Bank Group’s private sector arm IDB Invest has structured a US$250m financing package for the Ferrocarril Central PPP project to rehabilitate the 273 km north-south main line between Montevideo and Paso de los Toros.
The fixed rate B-bond is the largest B-bond structured by IDB Invest to date. The proceeds will be used to refinance existing debt, improving the overall financing terms.
IDB Invest said its package would unlock financing available from international institutional investors, while supporting Uruguay’s goal of attracting direct foreign investment and channelling new resources to support infrastructure projects.
The deal is expected to contribute to four United Nations Sustainable Development Goals: Decent Work & Economic Growth (SDG 8); Industry, Innovation & Infrastructure (SDG 9); Responsible Production & Consumption (SDG 12); and Partnership for the Goals (SDG 17).
The latest facility follows a US$536m financial package in 2019 which included a US$300m loan from IDB Invest with the remainder mobilised from commercial banks and investors.
‘Investing in large-scale, sustainable infrastructure projects can have a transformative impact for the future of our region’, said IDB Invest’s Chief Investment Officer Gema Sacristan on June 8. ’At IDB Invest, we continue to innovate to mobilise financing and attract new investors to Latin America and the Caribbean.’
- · The Ferrocarril Central project was described in detail in the January 2022 issue of Railway Gazette International.