IDB Invest has announced a new finance package for Uruguay’s Central Railroad Line Project, which aims to increase connectivity and integration within the country and between Montevideo and the rest of the country. A $250 million senior facility is being provided via a fixed-rate B-bond.
This is IDB Invest’s largest B-bond for an infrastructure project in Latin America and the Caribbean. This is IDB Invest’s largest B-bond structure to date. The funds will be utilised to refinance existing debt, thereby improving the project’s overall financial terms.
Through this B-bond, IDB Invest is easing the mobilisation of capital market solutions, freeing funding from international institutional investors and assisting Uruguay in attracting direct foreign investment and channelling fresh resources to support infrastructure projects.
This new facility follows a $536 million finance package from IDB Invest in 2019, which included a $300 million loan from IDB Invest and the rest raised from commercial banks and investors. A public-private partnership (PPP) contract was used to carry out the project.
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