IDB approves US$200mn credit line for Abengoa infra projects

- Monday, December 19, 2011

IDB approves US$200mn credit line for Abengoa infra projects

IDB has greenlighted a US$200mn credit line for Spanish firm Abengoa to finance sustainable infrastructure projects in Latin America in sectors including water and sanitation.

The six-year credit line will be used to fund the initial stages of projects, such as legal or environmental and social impact studies, initial construction works, and the purchase of land, machinery and equipment.

The funds could facilitate the development of infrastructure projects worth up to US$1.2bn, particularly in Brazil, Chile, Mexico and Peru, according to an IDB release.

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

The credit facility will also benefit sectors including power transmission and generation, particularly renewable energy, and health concessions in the region.

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.