IFC okays US$50mn credit guarantee for CNO

Thursday, October 27, 2011

IFC has approved a US$50mn partial credit guarantee to Brazil's Construtora Norberto Odebrecht (CNO) to support infrastructure development in Brazil and other Latin American countries.

The guarantee will allow CNO to obtain up to US$250mn in surety bonds to support up to US$2bn in construction contracts in sectors such as roads, ports, airports, water, irrigation and energy, the bank said in a release.

The IFC support comes under the bank's new partial credit guarantee facility, aimed at improving the availability of surety bond insurance in the face of growing demand for infrastructure.

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"We expect to replicate this novel financial structure with IFC and other institutions in the future so as to further leverage capacity with our global surety partners," said Marcos Lima, director of CNO parent company Odebrecht's brokerage unit.