Bogota, Colombia, April 3, 2014
—IFC, a member of the World Bank Group, will invest $70 million in Financiera de Desarrollo Nacional (FDN), a Colombian financial development institution that will play a pivotal role in promoting the participation of private companies in Colombia’s efforts to revamp its infrastructure sector.
The investment is the latest example of the IFC’s support for Colombia’s plans to sharply improve its infrastructure sector, which requires large-scale investments over the coming years and which will increase the competitiveness of the Colombian economy.
FDN was created by the Colombian government in 2011 with a mandate to bridge some of the financing difficulties faced by large infrastructure projects. FDN will provide long-term funding for some of these projects, which require innovative financial products tailored to the needs of each project.
FDN will initially focus on infrastructure, but its plans are to eventually branch out into other sectors such as energy, transportation and health.
“Colombia can feel proud of the vote of confidence that is being provided by such a strong institution,” said Colombian Finance Ministry Mauricio Cárdenas.
Clemente del Valle, President of FDN, said that the “capitalization will allow us to increase our lending potential and to ensure that the financial structures for infrastructure projects are more efficient. We are committed to the success of this program and will work to ensure that resources are available
In addition, FDN will build up local know-how through a special public-private partnership unit that will focus on structuring infrastructure projects. On October last year, IFC and FDN provided each $2 million to support the creation of this unit.
This unit will support the development of well-structured public private partnerships -- agreements between governments and firms to provide infrastructure and public services—at the national and regional level.
“The infrastructure sector in Colombia has been a priority for IFC and this investment shows that we continue to support Colombia’s efforts to improve its infrastructure,” said Irene Arias, IFC’s Director for Latin America and the Caribbean. “An effective infrastructure program between the government and the private sector can be crucial for generating inclusive economic growth and improving Colombia’s competitiveness. FDN will be instrumental in making this happen and IFC is a long-term partner in this endeavor,” she said.
In Colombia, IFC focuses on supporting sectors essential to social and economic development, including natural resources industries, infrastructure, health, education, agribusiness, and public-private partnerships to build ports, roads, and airports. IFC helps leading Colombian companies modernize and expand their businesses. IFC also promotes access to finance for micro, small, and medium enterprises, and works on improving the investment climate by simplifying regulations and royalty management.
To learn more about IFC in Latin America and the Caribbean, visit
www.ifc.org/lac
.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
.
