IDB.Nov 25, 2011. WestLB, HSBC, Caixa Geral, Santander join IDB’s A/B Loan Program to finance a project that is critical to help ease congestion at Santos port.The Inter-American Development Bank (IDB) closed a $430 million syndicated loan with a group of four international commercial participants to finance the construction, operation and maintenance of a new private mixed-use container and liquids terminal in Brazil’s Santos Port, the largest port complex in the region.
The loan was granted to Empresa Brasileira de Terminais Portuários S.A. (Embraport), responsible for the project, which is critical in easing congestion and reducing costs in Santos. The transaction involves a 15-year $100 million IDB A loan and a 12-year IDB B loan of $330 million from WestLB, Caixa Geral de Depositos, HSBC and Banco Santander.
In parallel, Caixa Economica Federal of Brazil has also approved separate financing for the project totaling R$633 million, funded by BNDES, which alongside the IDB financing, will make up the $786 million (equivalent) global senior debt package.
“This operation sets an important milestone for the IDB and Brazil because we see it as an aggressive step towards supporting more private investment in the port sector. In this difficult credit environment, the IDB plans to do more to support Brazilian infrastructure, both through our own balance sheet as well as through attracting participants and co-financiers,’’ said John Graham, the project team leader at the IDB’s Structured and Corporate Finance Department.
The loans from the IDB and CEF/BNDES will finance the first phase of the new terminal, which will have an expected capacity of more than 1 million TEU (a measure that refers to number of 20-foot containers that the facility can handle per year) and will be able to handle liquid bulk. The project will improve the port’s capabilities to receive a new generation of deeper-draft container ships, which have already become commonplace in the global shipping market, helping reduce waiting lines outside the port.
The new terminal will also contribute to improved traffic conditions in the city because it will have adequate road and rail connections, and will be located away from the congested urban area of Santos itself. The new terminal will create approximately 1,500 direct jobs during construction as well as 550 employees at the outset of the operation and 1,500 at full capacity.
About the IDB's Structured and Corporate Finance Department
The Structured and Corporate Finance Department (SCF) leads all IDB's non-sovereign guaranteed operations for large-scale projects, as well as those linked to companies and financial institutions. Through its Loan Syndication Program, SCF acts as a catalyst, helping to engage third-party resources by partnering with commercial banks, institutional investors, co-guarantors and other co-lenders for projects with high developmental impact.
The loan was granted to Empresa Brasileira de Terminais Portuários S.A. (Embraport), responsible for the project, which is critical in easing congestion and reducing costs in Santos. The transaction involves a 15-year $100 million IDB A loan and a 12-year IDB B loan of $330 million from WestLB, Caixa Geral de Depositos, HSBC and Banco Santander.
In parallel, Caixa Economica Federal of Brazil has also approved separate financing for the project totaling R$633 million, funded by BNDES, which alongside the IDB financing, will make up the $786 million (equivalent) global senior debt package.
“This operation sets an important milestone for the IDB and Brazil because we see it as an aggressive step towards supporting more private investment in the port sector. In this difficult credit environment, the IDB plans to do more to support Brazilian infrastructure, both through our own balance sheet as well as through attracting participants and co-financiers,’’ said John Graham, the project team leader at the IDB’s Structured and Corporate Finance Department.
The loans from the IDB and CEF/BNDES will finance the first phase of the new terminal, which will have an expected capacity of more than 1 million TEU (a measure that refers to number of 20-foot containers that the facility can handle per year) and will be able to handle liquid bulk. The project will improve the port’s capabilities to receive a new generation of deeper-draft container ships, which have already become commonplace in the global shipping market, helping reduce waiting lines outside the port.
The new terminal will also contribute to improved traffic conditions in the city because it will have adequate road and rail connections, and will be located away from the congested urban area of Santos itself. The new terminal will create approximately 1,500 direct jobs during construction as well as 550 employees at the outset of the operation and 1,500 at full capacity.
About the IDB's Structured and Corporate Finance Department
The Structured and Corporate Finance Department (SCF) leads all IDB's non-sovereign guaranteed operations for large-scale projects, as well as those linked to companies and financial institutions. Through its Loan Syndication Program, SCF acts as a catalyst, helping to engage third-party resources by partnering with commercial banks, institutional investors, co-guarantors and other co-lenders for projects with high developmental impact.
