IIC finances expansion of Kingston’s Container Terminal in Jamaica
The Inter-American Investment Corporation (IIC), acting on behalf of the Inter-American Development Bank (IDB) Group, has signed a US$265 million financing package with Kingston Freeport Terminal Limited. The project will optimize and expand Kingston’s container terminal capacity in Jamaica, as the port must stay competitive to handle larger ships now passing through the expanded Panama Canal.
The upgraded terminal will soon manage increased vessel volume, expanding capacity from 2.8 to 3.2 million Twenty-Foot Equivalent Units (TEUs) per year within the next six years. The project will contribute to strengthen Jamaican’s relevancy in global trade and foster private sector activity and foreign direct investment.
The financing includes a US$205 million IDB Loan, comprised of an A-loan of US$94 million and B-loans of US$111 million from Cordiant, FMO, CIBC First Caribbean and CIFI. The package also includes co-loans from Proparco and DEG for US$30 million each. The loans offer a tenor of up to 15 years. Total project cost is US$452 million, and it is the largest infrastructure project funded by the IIC in Jamaica. In addition to long-term financing, the IIC provided assessments to optimize dredging and mitigation measures with the aim of protecting local biodiversity and cultural heritage.
About the Inter-American Investment Corporation (IIC)
The Inter-American Investment Corporation (IIC), a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. The IIC finances sustainable enterprises and projects to achieve financial results that maximize social and environmental development for the region. With a current portfolio of US$7 billion under management and 330 clients in 20 countries, the IIC works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients.