CAF Readies $1bn World Cup Fund

CAF is teeing up a $1bn fund to help Brazilian subnational entities, such as states and municipalities, finance projects linked to the 2014 World Cup, to be held in the country. Moira Paz-Estenssoro, CAF’s Brazil representative, tells LatinFinance the funds will be directed at improving the touristic capacity of Brazil’s hosting cities, including security and critical urban developments, as well as supporting and financing PPPs related to the Cup. Once the subnational governments can obtain a guarantee for their respective projects from the federal government, CAF will provide financing from the fund that may carry tenors of up to 18 years with grace periods of 4 years, says Paz-Estenssoro, speaking at a Project Finance – Euromoney conference Thursday in Sao Paulo.