IDB Invest supports Rutas del Este 2 and 7 road financing

IDB Invest has granted a $200 million financial package to Concesionario Rutas del Este – a consortium comprising Sacyr Concesiones (60%) and Ocho A (40%) – to support the $458 million 17-year bond financing for the Rutas 2 and 7 highway project in Paraguay. The project is the first public-private-partnership (PPP) contract signed under Paraguayan PPP Law.

The IDB support comprises a guarantee for the construction risk associated with the scheme, and a 17-year loan. The facilities allow Concesionario Rutas del Este to use the bond proceeds from day one. The issue is 2.5 times oversubscribed and the bonds have a 5% coupon.