German development bank grants US$140 million for infrastructure projects financed by CAF

(Special, December 14, 2009). German development bank KfW Entwicklungsbank (KfW) will grant funds of US$140 million to CAF to refinance projects it supports, following the signing of a long-term loan agreement by CAF President & CEO Enrique García, and Rüdiger Hartmann and Silvia Paschke, first vice president and senior project manager of KfW, respectively.

“This operation demonstrates CAF's catalytic role, which is to attract funds from other regions of the world for Latin American development on advantageous conditions for key sectors in its shareholder countries,” Enrique García said. “The signing is part of a series of activities which we are executing with KfW, prestigious institution with which we have had business relations since 1977,” he added.

The infrastructure projects which will receive the funds are mainly investments in transport, energy, and water and sanitation in both public and private sectors, giving priority to projects which have a high impact on benefiting disadvantaged communities.

CAF and KfW have signed seven loan agreements to date including the current one for a total of US$510 million. The Corporation is currently in process of using a credit facility signed with the German organization to finance renewable energy and energy efficiency projects ; and is beginning negotiations for a second loan to support projects in favor of the environment.