Financing details revealed for Ferrocarril Central project

14 October 2019 - 12:00 am UTC

Details emerged on the dual-currency USD 942m financing package that will fund the USD 1.1bn Ferrocarril Central project in Uruguay, according to official documentation.

The SPV behind the railroad project is working with IDB Invest on a 17-year USD 538m A/B loan, which will be supported by Intesa Sanpaolo and SMBC.

The financing plan also includes debt equivalent to USD 329m in the local currency linked to inflation (UI). An infrastructure debt fund managed by Andean development bank CAF will provide the facility that will pay approximately 6.1% annually.

IDB Invest is also leading a USD 75m mezzanine facility, also joined by EIG.

The financing package is backed by availability payments from the Ministry of Transport and Public Works (MTOP).

The financing package will equate 85% of the total investment required, with the SPV contributing USD 113m from its balance sheet. The government will provide two advanced availability payments of USD 60m.

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