IDB approves $200 million credit line for Abengoa of Spain

IDB resources will finance sustainable infrastructure projects in Latin America

The Inter-American Development Bank (IDB) approved a revolving credit of $200 million for the Spanish company Abengoa S.A. to finance the development of power transmission and generation projects, especially from renewable sources, as well as water, sanitation, and health concessions in Latin America.

The six-year credit line will fund costs associated with the development of initial stages of projects, such as legal or environmental and social impact studies, initial construction works, purchase of land, machinery, and equipment, and expenses related to a pilot solar energy initiative.

The credit facility could facilitate the initial development of infrastructure projects worth up to an estimated $1.2 billion over its six-year term, particularly in Brazil, Chile, Mexico, and Peru.

"The IDB is helping create sustainable solutions for infrastructure needs in the region through a partnership with a global leader, and fostering the development of innovative initiatives in solar energy generation," said Valentina Sequi, IDB project team leader in the Bank’s Structured and Corporate Finance Department.

With the IDB resources, Abengoa will diversify its supply of short-term financing, which is not available on international credit markets due to the crisis in Europe.

Founded in 1941 in Seville, Spain, Abengoa is one of the world’s leading companies specializing in renewable energy, infrastructure development, and environmental services. The company has worked in Latin America since 1963.

Structured and Corporate Finance Department

The IDB’s Structured and Corporate Finance Department (SCF) manages all IDB non-sovereign loan guarantee loan operations for large-scale projects, companies, and financial institutions in Latin America and the Caribbean. Through its syndicated loan program, SCF plays a catalytic role in helping to mobilize third party resources through partnerships with commercial banks, institutional investors