IDB Mulls $400m Panama Canal Loan

The IDB has offered a $400m loan to help meet the $2.25bn the Panama Canal Authority (PCA) expects to borrow to finance its expansion projects, it said. The IDB and PCA have reached agreement in principle on the proposed terms for a non-sovereign guarantee loan, a proposal for which will be presented to the IDB’s board for consideration in early October. The IFC is also considering lending up to $500m to the project. The authority has said that development bank pitches total more than the amount it needs to borrow, which would allow it to skip commercial bank financing if it stays on budget. Definitive financing plans for the project are expected in the fourth quarter.