Port of Santos Gets A/B Loan

The Port of Santos, designed to be Brazil’s main port and the largest in LatAm, has obtained an A/B loan worth $679m. The A loan, provided by the IFC, is worth $97m and the B tranche is a syndicated loan for $582m. BNP Paribas, Credit Agricole, DnB Nor Bank, ING Capital, KFW Ipex Bank and Banco Santander are participating in the syndication. Each will provide $97m, says John Groesbeek, the IFC’s head of syndications for LatAm and the Caribbean. “Both the A and B loans have a term of 10 years and a grace period of 2.0-2.5 years,” he says, declining to discuss pricing. The total project cost is $908m, according to the IFC. The remainder of the funds needed to develop the project, $229m, will from sponsors’ equity, explains Groesbeek. The sponsors are UK-based Terminal Investment Limited and The Netherlands’ APM Terminals, both global container terminal operators. Proceeds will be used to develop the greenfield terminal, says Gabriel Goldschmidt, IFC manager for infrastructure in LatAm and the Caribbean. The port should be operational in about 1.5-2.0 years, he says.