Antioquia Development Institute (IDEA) signs US$30-million loan agreement for social development projects

(Medellin, March 27, 2009).- In the presence of the governor of Antioquia department, Luis Alfredo Ramos; CAF president & CEO Enrique Garcia, and the manager of the Antioquia Development Institute (IDEA), Álvaro Vásquez Osorio, signed a US$30 million loan agreement for execution of the "Financing Program for Social Development Projects" to be implemented in this region. This is the first loan contract under the US$50 million global approval available for execution by IDEA.

The CAF president said, "this financing for IDEA will be used to make investments which improve the quality of life of urban and rural populations of Antioquia department, through projects in various social sectors." "This loan operation without sovereign guarantee to a regional development financial institute shows that CAF is flexible in responding to the needs of its shareholder countries."

The general objective of the loan is in line with the Antioquia Government Development Plan, since the funds will migrate to the regions where high poverty rates and lack of satisfaction of basic needs have to be attacked.

The funds approved will be used to finance projects in the sectors of basic sanitation, rural and urban development, habitat improvement, expansion of health services, education, secondary and tertiary roads, and electricity micro-plants, among others.

IDEA is responsible for the technical and financial evaluation, and verifying compliance with the environmental requirements applicable to the projects financed in the Program, which will be executed by territorial entities and public service companies in Antioquia.

CAF offered IDEA excellent financing rates and terms, which began a process of closer relations, collection and transfer of information, until the loan was negotiated and the agreement signed. For its part, the Corporation received sufficient guarantees of liquidity and payment capacity from the Institute.

The "Financing Program for Social Development Projects" is an innovative initiative of IDEA, whose investments will be executed over three years. This is the first time the Institute has used external borrowing, which will improve its balance sheet structure, diversify sources of funding, and increase its development operations in Antioquia department.