The Inter-American Development Bank today announced the approval of $50 million in financing for Corporación Interamericana para el Financiamiento de Infraestructura,S.A. (CIFI), to support medium- and long-term debt financing for private sector infrastructure projects.
The Banks support for CIFI, a specialized financial corporation established in 2001 under the laws of Costa Rica, will provide leverage to the equity contributed by the institutions shareholders, which includes three regional multilateral financial institutions as well as seven international commercial banks operating in Latin America and the Caribbean. IDB financing consists of a loan from ordinary capital of up to $25 million (A-loan) and a syndicated (B-loan) of around $25 million, which will be comprised of resources from financial institutions through the subscription of participation agreements with the IDB.
The proceeds of the credit facility will be used by CIFI to on-lend to private sector projects in Latin America and the Caribbean, with a particular focus in the smaller economies of the region. CIFI specializes in financing infrastructure projects in energy, gas, transportation and logistics, water and sanitation, telecommunications, and infrastructure related services. The financing will contribute to the provision of medium and long-term financing for small and medium-sized private sector infrastructure projects in Latin America and the Caribbean, and it is designed to mobilize international resources for tenors that would otherwise not be available. An additional goal of the IDB is to attract potential future lenders and shareholders to CIFI, supporting its institutional development.