BASSETERRE, St. Kitts – WITH sketchy signs of economic stability returning, the International Finance Cooperation (IFC), a member of the World Bank Group, announced yesterday (June 15) that it would provide debt financing and acquire an equity stake in Corporación Interamericana para el Financiamiento de Infraestructura (CIFI).
The CIFI is a non-bank financial institution that funds small and mid-size infrastructure projects in Latin America and the Caribbean, and IFC’s investment is hoped to boost access to finance for projects which help to develop infrastructure in the region.
According to a news release issued by IFC, its investment consists of a US$20M loan and a US$9.9M equity investment. The report also informs that IFC will acquire existing shares from such shareholders as the Inter-American Investment Corporation, which would retain shareholding in CIFI and the Republic Finance and Merchant Bank.
Atul Mehta, IFC Director for Latin America and the Caribbean, said, “We are delighted to partner with CIFI, which has a complementary focus to that of IFC for the development of infrastructure in Latin America and the Caribbean. CIFI has developed an impressive track record by providing incremental long-term financing for small and medium infrastructure projects.”
IFC’s investment was warmly welcomed by CIFI and was described by Roldan Trujillo, CIFI General Manager and CEO, as “important to supporting our growth strategy”.
“We are pleased to welcome IFC as an investor and shareholder in our institution, alongside other multilateral financial institutions and leading European and regional commercial banks,” Trujillo said.
The announcement came one week after the Caribbean Development Bank (CDB) signed an agreement to provide a loan equivalent to US$25M to the CIFI to assist it in expanding its lending programme in CDB’s borrowing member countries.
The CDB loan to CIFI is expected to contribute to further development of the social and economic infrastructure of the Bank’s borrowing member countries, as well as improved capacity and competitiveness. It is also expected to contribute to poverty alleviation in these countries.
Other institutions, including Caja de Ahorros y Monte de Piedad de Madrid (Caja Madrid), Cordiant Capital, Caixa Geral de Depositos, Intesa Sanpaolo, and BPD Bank, will provide additional loans totalling US$48.5M.
