The Inter-American Development Bank, through its private-sector arm IDB Invest, has signed an innovative refinancing facility to support the modernization of a multi-purpose port terminal in Peru.
The bank is an anchor investor in Peru’s first A/B bond, consisting of an A loan and a 20-year B bond, for the Salaverry Terminal Internacional (STI). The transaction has a value of US$115 million, of which IDB Invest contributes a first tranche of US$50 million and institutional investors US$65 million in a second tranche.
The hybrid financing structure, a first in the Peruvian project finance market, is tailored to STI’s debt capacity over the remaining lifespan of the 30-year public-private partnership concession.
White & Case advised STI, while Allen & Overy advised IDB Invest.
The project will enable the terminal to meet increasing logistics demands from various sectors, such as agricultural export, grains and mining production.