CAF signs a US$500 million A/B Loan with Cálidda to expand the natural gas network in Lima and Callao and support Peru's energy transition

CAF –development bank of Latin America and the Caribbean, in its role as Lender of Record and Lead Arranger, has successfully structured a US$ 500 million A/B Loan for Cálidda, the company holding the concession for natural gas distribution service in Lima and Callao. The primary objective of this loan is to support the expansion of the natural gas distribution system within Cálidda's concession area, contributing to the widespread access to this essential public service.

The loan proceeds will be primarily used to finance Cálidda's investment plan, driving the expansion of the country's energy infrastructure. The goal is to connect 900 thousand new people to the natural gas service by 2030 and deploy an additional 569 kilometers of distribution networks. This expansion is key to further promoting the mass adoption of natural gas. Additionally, the loan will allow Cálidda to refinance part of its existing debt originally served to deploy the natural gas distribution network.

The transaction was backed by three prominent international financial institutions acting as B Participants: Bank of America N.A. (BofA); Bank of China Limited, Panama Branch (BOC); and SMBC. Through this structure, CAF mobilized US$245 million in private sector resources for the region. Notably, this marks BofA's first AB Loan with CAF, while BOC and SMBC are recurring partners in similar transactions.

This operation reaffirms CAF's commitment to mobilizing private capital towards the region, in alignment with harmonized methodologies adopted by Multilateral Development Banks. It also strengthens CAF’s strategy for an inclusive and sustainable energy transition, while reflecting confidence in Cálidda as Peru's leading natural gas distribution company.

"This transaction is a remarkable example of how the joint efforts of top-tier financial institutions can drive strategic energy infrastructure projects in Latin America," said Sergio Díaz-Granados, Executive President of CAF. "The confidence shown by BofA, BOC and SMBC in this Cálidda initiative reaffirms the potential of these financial structures to mobilize international capital toward energy transition projects that generate transformative impact by improving access to essential public services that enable sustainable development of our communities", added Díaz-Granados.

For Cálidda, this financing represents a key milestone in its growth strategy and commitment to the country's energy transition.

"At Cálidda we are grateful for the trust CAF has placed in structuring this transaction, which will allow us to secure the necessary funds to continue expanding access to natural gas in Lima and Callao. Access to natural gas means progress, savings and environmental improvement; benefits we aim to accelerate through the financing provided by CAF. With these resources, we will expand our distribution network and move toward our goal of connecting 900 thousand new people to the service by 2030," stated Mario Caballero, Chief Financial Officer of Cálidda.

The company also highlighted that this financing strengthens its financial structure by optimizing liabilities originally used to develop the distribution network, ensuring greater sustainability to its long-term investment plan.

"The trust placed in us by CAF and international financial institutions such as BofA, BOC and SMBC reaffirms Cálidda's position as the leading natural gas distribution company in Peru and a key player in the country's energy transition", added the CFO.

Cálidda thus reaffirms its purpose of promoting universal access to natural gas in Peru, generating positive impacts in terms of competitiveness, quality of life, health and environmental sustainability.

CAF continues to consolidate its role as a mobilizer of private sector resources for high-impact projects in the region. Through this transaction, the institution strengthens its strategy of delivering innovative financial solutions that foster economic development, social inclusion and environmental sustainability across Latin America and the Caribbean.

About CAF - development bank of Latin America and the Caribbean

It is an institution committed to sustainable development and regional integration. Founded in 1970, it includes 23 member countries, 21 from Latin America and the Caribbean, along with Spain and Portugal, as well as 13 private banks. Its mission is to improve the quality of life of Latin American and Caribbean people through the financing of public and private sector projects, the provision of technical assistance, and other specialized services. CAF is one of the main sources of multilateral financing in the region and a generator of knowledge to strengthen public policies and enhance the impact of development projects. (www.caf.com).

About Cálidda

Cálidda celebrates 21 years of bringing Natural Gas service to families in Lima and Callao, enabling savings of over US$ 40.97 billion (Macroconsult). In over two decades of service and with an investment of more than US$ 1.8 billion, the company has installed over 2 million natural gas connections through the construction of more than 18,000 km of pipeline networks. Additionally, the use of this cleaner energy source has generated savings of more than S/ 1.915 billion in public health. In line with the Sustainable Development Goals, Cálidda conducts its businesses in a way that contributes to climate change mitigation and environmental protection. For more information, visit https://labuenaenergia.calidda.com.pe/

About Bank of America

Bank of America is one of the world's leading financial institutions, offering a full range of banking, investment, asset management, financial and risk management products and services. It provides an unmatched network in the United States, serving approximately 69 million clients, with 3,700 financial centers, 15,000 ATMs and 59 million digital users via its award-winning digital banking platform. Bank of America is a global leader serving corporations, institutions, governments and individuals worldwide, supporting approximately 4 million households with innovative, user-friendly online products and services. The company serves its clients through operations in the United States, its territories, and more than 35 countries. Shares of Bank of America Corporation are traded on the New York Stock Exchange (NYSE: BAC)*.

*Neither Bank of America Corporation nor its affiliates engage in banking activities in any jurisdiction where such activities are restricted by local laws to licensed banks, except in jurisdictions where its banking affiliates have obtained the required licenses. 

About SMBC Group

The SMBC Group is a top-tier global financial group. Headquartered in Tokyo and with a 400-year history, the SMBC Group offers a wide range of financial services, including banking, financial leasing, securities, credit cards and consumer financing. The Group has more than 150 offices and 120,000 employees worldwide in nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of the SMBC Group, which is one of Japan's three largest banking groups. SMFG shares are listed on the Tokyo and Nagoya stock exchanges, and ADRs in New York (NYSE: SMFG). In the Americas, the SMBC Group has presence in the United States, Canada, Mexico, Brazil, Chile, Colombia and Peru. The Group's operating companies in the Americas include Sumitomo Mitsui Banking Corp. (SMBC), SMBC Americas Holdings, Inc., SMBC Nikko Securities America, Inc., SMBC Nikko Securities Canada, Ltd., SMBC Capital Markets, Inc., SMBC MANUBANK, JRI America, Inc., SMBC Leasing and Finance, Inc., Banco Sumitomo Mitsui Brasileiro S.A., and Sumitomo Mitsui Finance and Leasing Co., Ltd. (collectively, SMBC Group's Americas Division). For more information, please visit www.smbcgroup.com.

About Bank of China

Bank of China (BOC) is China's most international and diversified bank, with over a century of continuous operation. It has a presence in 64 countries and regions, offering global institutional networks that connect its clients with opportunities in major international markets. Recognized as a Global Systemically Important Bank (G-SIB) for 14 consecutive years since 2011, BOC combines global reach with financial strength. The bank maintains a strong commitment to sustainability, promoting green, inclusive, digital and technologically driven finance. Its business lines include Investment Banking, Corporate and Retail Banking, Insurance and Asset Management.