Press Releases
print

IFC Supports New Finance Institution to Boost Infrastructure in Colombia


In Bogota, Colombia:
Darcy Crowe
Phone: +57 1 313 6449
E-Mail: DCrowe@ifc.org

Washington D.C., October 10, 2014—IFC, a member of the World Bank Group, is boosting its support of Colombia’s infrastructure sector by helping launch a specialized finance institution that will play a critical role in securing the financial resources needed for the country’s upcoming large-scale infrastructure projects.

IFC is investing $70 million in Financiera de Desarrollo Nacional, which will operate as a specialized financial institution that will mobilize funding for Colombia’s infrastructure projects, including a new toll-road program that will represent a crucial upgrade to solve some of the country’s infrastructure bottlenecks. IFC will have a 20% equity stake in FDN.

Colombia needs about $40 billion in infrastructure investments and FDN will help ensure the participation of the private sector in financing these projects, which will bolster the country’s sustainable economic growth and improve its competitiveness.

FDN will serve as key supporter for these plans and help Colombia’s financial industry meet this financing need by offering long-term loans and tailor-made financial tools that will attract institutional investors to these projects. FDN will initially focus on supporting the financing of the toll road programs, but will eventually help address the financing needs of all segments of the Colombian infrastructure sector.

“This investment will be instrumental in providing infrastructure finance and developing capital markets in Colombia,” said Jin-Yong Cai, IFC Executive Vice President and CEO. “It will support inclusive economic growth, and improve the overall competitiveness of the Colombian economy,” he said.

Mauricio Cárdenas, Colombia’s Finance Minister said that “with this funding, FDN will have a greater capacity to finance the different infrastructure projects that are a priority for the country.”

Clemente del Valle, FDN’s president, said that “with this new step, FDN strengthens its autonomy and financial capacity and consolidates itself as the leader of infrastructure finance in Colombia.”    

In addition to its financing role in the infrastructure sector, FDN will bolster the local know-how through a special public-private partnership unit that will focus on structuring infrastructure projects. In October last year, IFC and FDN each provided $2 million to support the creation of this unit.

This unit will support the development of well-structured public private partnerships -- agreements between governments and firms to provide infrastructure and public services—at the national and regional level.

In Colombia, IFC is engaged in supporting sectors essential to social and economic development, such as infrastructure, health, education, agribusiness, and public-private partnerships to build ports, roads, and airports. IFC also promotes access to finance for micro, small, and medium enterprises, and works on improving the investment climate by simplifying regulations and royalty management. IFC’s current investment portfolio in projects in Colombia is $1,5 billion, of which $500 million was mobilized or syndicated from other banks.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit www.ifc.org        

Stay Connected
www.facebook.com/IFCwbg
www.twitter.com/IFC_org
www.youtube.com/IFCvideocasts
www.ifc.org/SocialMediaIndex