The proceeds will help improve the overall financing terms and conditions of the project. Credit: Inter-American Investment Corporation.

IDB Invest, a member of the IDB Group, has approved a $250m financing package for the Central Railroad Line project in Uruguay.

The package, comprising a $250m senior facility through a fixed-rate B-bond, will help enhance connectivity and integration within Uruguay with its capital Montevideo.

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Proceeds from the package will be used for refinancing existing debt, besides strengthening the overall financing terms of the project.

Via this B-bond, IDB Invest is helping meet Uruguay’s target of attracting direct foreign investment, directing new resources to drive infrastructure projects and opening up funding available from international institutional investors.

The B-bond is said to be the largest that IDB Invest has structured so far. 

IDB Invest chief investment manager Gema Sacristan said: “Investing in large-scale, sustainable infrastructure projects can have a transformative impact for the future of our region.

“At IDB Invest, we continue to innovate to mobilise financing and attract new investors to Latin America and the Caribbean.”

In 2019, IDB Invest also provided a financial package of around $536m, including a $300m loan from IDB Invest. The rest of the amount was mobilised from investors as well as commercial banks.

The project was implemented through a public-private participation (PPP) contract.

IDB Invest stated that the move is anticipated to support four United Nations sustainable development goals.

These goals include 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).