The CAF will grant credits of 500 million dollars to projects in Uruguay



The Development Bank of Latin America (CAF) announced today that it will grant long-term credits of up to 500 million dollars to finance infrastructure projects in Uruguay.

The agency, as explained in a statement, created the Financial Trust Debt Fund for infrastructure in the country "II CAF-AM", which will be valid for 30 years and, in the next five, will have a maximum amount authorized by the Central Bank of Uruguay (BCU) of about 500 million dollars.

"With the constitution of this fund new assets are introduced in the region that will benefit the infrastructure of Uruguay and will contribute to boost its Capital Market", the document details.

In addition, CAF estimates that the need for investment in infrastructure for the 2015-2019 five-year period is more than 2,140 million dollars in education, energy, railways, ports, health, road and housing projects.

"The launch of the initiative will be made through the Electronic Securities Exchange (BEVSA) and the Stock Exchange of Montevideo (BVM), and investors will make their participation as required by the projects," the text adds. that, in addition, indicates that CAF will co-finance 10% of the investment in debt.

On the other hand, the entity explains that "the CARE and Fix Scr agencies (affiliated with Fitch Ratings) granted CAF-AM a risk rating of BBB (uy)" and that "the public offering is registered with the BCU and will be quoted in the BVM and in the BEVSA ".

Finally, the notice states that these loans will have to meet "minimum requirements" that ensure an adequate risk profile, since they will have to stick to an origination, analysis, negotiation and credit follow-up scheme subject to the best credit practices consistent with the of CAF.

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