CAF finances new clinker production line for Holcim Ecuador
This is an AB loan for USD 125 million to increase the production capacity of clinker in the country
CAF, Development Bank of Latin America, and Holcim Ecuador S.A. signed an AB loan contract for USD 125 million to finance the modernization of the Guayaquil Plant for the production of clinker (material required for cement production).
This investment by Holcim Ecuador S.A. promotes the country's sustainable development by increasing the production capacity of clinker to 3,4 million tons/year, substituting the current imports of clinker by local production, and reducing the exit of foreign currency from the country.
In addition, it contributes with infrastructure, commercial, and housing works, as well as with the generation of new, direct and fixed employment. The plant's modernization also contributes with the environment, as 20 percent of the investment is aimed at the use of cleaner environmental technology.
Financing was structured under an AB scheme with a contribution by CAF for Tranche A of USD 40 million for a 5-year term, and by ITAU BBA for tranche B for USD 85 million for a 5-year term.
AB loan constitute a co-financing mechanism established by multilateral organizations to finance development projects jointly with other international financing institutions.
Thus, CAF's catalytic role in Latin America is materialized not only as a result of mobilizing external resources and channeling them toward the region, but also by connecting other prestigious international financial institutions in competitive conditions, as the case of ITAU BBA.
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