FDN signs alternative infra finance deal

Colombia’s Financiera de Desarrollo Nacional (FDN) has signed a $94.6m credit line deal with a multilateral to facilitate infrastructure investments in the country.

The deal between FDN and CAF, signed under the FDN’s Pesos Fund scheme, seeks to mobilize funds and resources from international organizations to finance infrastructure projects in Colombian pesos.

FDN president Clemente del Valle said: “This is good news for infrastructure projects in the country, and especially for the 4G Program. With the signing of this contract a new financer joins the Program, which will undoubtedly be a decisive factor. The latest financial close that benefited from the FDN’s pesos fund was Ruta del Cacao.”

The scheme, launched in May 2017, targets international players to raise funds in local currency for projects with limited financial resources or a shortage of dollars, thus generating an alternative financing solution.

Hugo Sarmiento, vice president of finance of CAF, said: “We are very pleased to be an active and direct part of the financing of infrastructure in Colombia. We have great confidence in the country, in its institutions and infrastructure program.”