IDB Provides Caribbean PCG; Sao Paulo Funds

The IDB has established a $200m partial credit guarantee facility to support FirstCaribbean’s long-term loans to infrastructure projects, tourism ventures and mid-size businesses. The facility, denominated in USD or local currency, will be available for 3 years to support at least $400m in FirstCaribbean lending to private sector borrowers. The IDB says initially the facility will focus on transactions in Jamaica, and later expanded to the Bahamas, Barbados, Belize and Trinidad and Tobago. Separately, the IDB has approved a $194m 25-year loan to the state of Sao Paulo to improve its roads network. The program will be carried out by the Sao Paulo state highways department and the loan has a 5-year grace period and is priced basis Libor.