Grupo Vía Central

Ferrocarril Central Paso de los Toros to Montevideo - IDB B-Loan

Borrower (s)
Grupo Vía Central
Industry
Infrastructure/Rail
Area of finance
Project & Infrastructure Finance
Region
Latin America
Countries
Uruguay

Deal Overview

IDB Invest has provided a new financing package for the Central Railroad Line project in Uruguay to improve the connectivity and integration in the interior of the country with its capital, Montevideo. The financing consists of a $250 million senior facility through a fixed rate B-bond.This is the...

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IDB Invest has provided a new financing package for the Central Railroad Line project in Uruguay to improve the connectivity and integration in the interior of the country with its capital, Montevideo. The financing consists of a $250 million senior facility through a fixed rate B-bond.

This is the largest B-bond structured by IDB Invest to date. The proceeds will be used to refinance existing debt, improving the project’s overall financing terms and conditions. 

IDB Invest is facilitating the mobilization of capital market solutions through this B-bond, unlocking financing available from international institutional investors, while supporting Uruguay’s goal of attracting direct foreign investment and channeling new resources to support infrastructure projects.

This new facility follows a previous financial package provided by IDB Invest in 2019 for approximately $536 million, consisting of a $300 million loan from IDB Invest and the remainder mobilized from commercial banks and investors. The project aims to improve the connectivity and integration of the interior regions of Uruguay, with its capital, Montevideo, building and maintaining 273km of rail lines. The total financing of the project was carried out in dollars and in local currency.

The project was executed through a PPP contract between the Ministry of Transport and Public Works of Uruguay and a special purpose company created with this purpose: Grupo Vía Central.

The deal is expected to contribute to four of the United Nations Sustainable Development Goals: 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).

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Deal Volume
$ 250m
Financial Close
07 June 2022

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Projects

Ferrocarril Central Paso de los Toros to Montevideo

Brownfield
Rail
Latin America
Uruguay
$ 1.1bn