IDB Approves $400m for Panama Canal

The IDB has approved a loan of up to $400m for the Panama Canal expansion project. An IDB spokesperson would not disclose terms. The Panama Canal Authority plans to raise about $2.3bn in loans to finance the expansion, which has an estimated cost of $5.25bn. The remainder will be covered with cash flow generated by the operation of the canal. In September, the authority said financing offers from multilateral and development banks – including up to $500m from the IFC – exceeded the amount it plans to borrow, giving it the option of bypassing commercial banks at a time when they are largely shut down. Moody’s rates the authority A2.