Compañía Española de Financiación del Desarrollo S.A. (COFIDES)
Expected Consideration Date by the Board:
Up to US$60 million joint Debt Facility ("the Facility") to provide long-term financing to modernize or expand the operations of joint venture small and medium-size private companies that have Spanish and Latin American or Caribbean shareholders, and are located in borrowing member countries of the Inter-American Investment Corporation ("IIC"), to improve their efficiency and competitiveness in the national and international markets ("the Project Loans"). The Project Loans will be presented by Compañía Española de Financiación del Desarrollo S.A. ("COFIDES"). The Facility will be structured as a joint Debt Facility where COFIDES will identify, analyze, and recommend Project Loans to the IIC. COFIDES will participate in the financing of such loans with up to US$30 million and the IIC with an additional up to US$30 million. The IIC will not lend to projects in nonborrowing member countries. Both the IIC and COFIDES will be coarrangers of the Facility. COFIDES will be the administrative agent for Project Loans financed by the Facility. Given its extensive experience in financing projects for local Spanish sponsors, it is expected that COFIDES will structure the Project Loans in both their financial and their legal aspects and provide information on such projects for the IIC?s review and approval. This joint Debt Facility will be structured by COFIDES and the IIC.
Environmental Classification and Issues: This Debt Facility will be rated as Category III according to the IIC's environmental and labor review procedures, indicating projects with moderate, specific negative impacts that have well-recognized, well-defined solutions. All projects must comply with IIC environmental and labor review guidelines. COFIDES has agreed to send two appropriate representatives to the IIC's environmental training course for financial intermediaries to better enforce the IIC's environmental and labor policies.