IDB Invest Structures its Largest B-Bond to Finance the Central Railroad Line Project in Uruguay

WASHINGTON, June 7, 2022 /PRNewswire/ -- IDB Invest provides a new financing package for the Central Railroad Line Project in Uruguay to improve connectivity and integration within the country with its capital, Montevideo. The financing consists of a $250 million senior facility through a fixed rate B-bond.

This is the largest B-bond structured by IDB Invest to date. The proceeds will be used to refinance existing debt, improving the project's overall financing terms and conditions. 

IDB Invest is facilitating the mobilization of capital market solutions through this B-bond, unlocking financing available from international institutional investors, while supporting Uruguay's goal of attracting direct foreign investment and channeling new resources to support infrastructure projects.

"Investing in large-scale, sustainable infrastructure projects can have a transformative impact for the future of our region," said Gema Sacristan, IDB Invest's Chief Investment Officer. "At IDB Invest, we continue to innovate to mobilize financing and attract new investors to Latin America and the Caribbean."

This new facility follows a previous financial package by IDB Invest in 2019 for approximately $536 million, consisting of a $300 million loan from IDB Invest and the remainder mobilized from commercial banks and investors. The project was executed through a public-private participation (PPP) contract.

The deal is expected to contribute to four United Nations Sustainable Development Goals: Decent Work and Economic Growth (SDG 8), Industry, Innovation, and Infrastructure (SDG 9), Responsible Production and Consumption (SDG 12) and Partnership for the Goals (SDG 17).

IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $14.8 billion in asset management and 376 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.

Grupo Vía Central is a special purpose company established solely for the purposes of the construction, rehabilitation, and maintenance of 273 km of railway lines between the cities of Montevideo and Paso de Los Toros. Its shareholders are well-known companies internationally and in Uruguay, including SACYR from Spain.

CONTACT: Ana Lucia Escudero, analuciae@iadb.org

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SOURCE IDB Invest