IDB Invest Structures Its Largest B-Bond to Finance the Central Railroad Line Project in Uruguay
IDB Invest has provided a new financing package for the Central Railroad Line Project in Uruguay to improve the connectivity and integration in the interior of 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 provided 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 aims to improve the connectivity and integration of the interior regions of Uruguay, with its capital, Montevideo, building and maintaining 273 km of rail lines. The total financing of the project was carried out in dollars and in local currency.
The project was executed through a public-private participation (PPP) contract between the Ministry of Transport and Public Works of Uruguay and a special purpose company created with this purpose: Grupo Vía Central S.A.
The deal is expected to contribute to four of the 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).
About IDB Invest
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.
About Grupo Vía Central S.A.
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, which are detailed below, are well-known companies internationally and in Uruguay. SACYR: Spanish multinational concessions, infrastructure and services group committed to innovation and sustainability. In Uruguay it is, together with SACEEM, the company that has executed, under a PPP contract, the works of national routes 21 and 24. NGE: a global, diversified French public works and civil engineering company with an extensive track record in PPPs and concessions. SACEEM: one of the largest construction and engineering companies in Uruguay, with more than 70 years of activity in the country and involved in the main infrastructure, energy, industrial and public works projects in the country. BERKES: with more than 80 years of experience, the company has developed projects in 18 countries around the world and is considered one of the leading engineering and construction companies in Uruguay.