IDB has approved US$60mn in financing for Costa Rican regional infrastructure financing corporation CIFI to support small and medium-sized infrastructure investments in Latin America and the Caribbean.
The funding will allow IDB and CIFI to meet the rising demand for infrastructure in the region, especially for small projects and infrastructure works in small and vulnerable countries, according an IDB release from the bank.
"The infrastructure gap in the region remains large and private sector financing for infrastructure, especially small and medium-size projects, has been scarce during the last few years," said Andres Ackermann, team leader for the project.
IDB will provide a senior secured loan for up to US$60mn with a seven-year tenor and a three-year grace period. The loan complements a previous syndicated loan approved in 2004, which totaled US$50mn.
CIFI is a specialized financial corporation with a pipeline of private infrastructure projects in the region, in areas including power, renewable energy, transportation, telecommunications, alternative fuels, water and sanitation, and other infrastructure-related sectors.
The corporation's shareholder group consists of multilateral organizations (36%) and private banks (64%), led by Spain's Caja Madrid. The World Bank's International Finance Corporation (IFC) is the second largest shareholder.