CIFI adopting aggressive business strategy to boost growth.
Wednesday, October 7, 2009.
CIFI is adopting a more aggressive business strategy to harness its potential in the Latin American and Caribbean markets, the institution's CEO Juan José Juste told BNamericas.
"We want to diversify the products we are offering and diversify our sources of funding," said Juste.
CIFI is still a very small organization compared to other entities in the region, with US$220mn in assets and a loan book of US$210mn as of this quarter.
"However, you cannot be guided by the size of the balance sheet. For shareholders, CIFI is very important from a strategic point of view. It is bigger than its balance sheet," Juste said.
CIFI was created to cover small and medium sized infrastructure initiatives in Latin America and the Caribbean. "While Caja Madrid was covering all the big transactions through a branch in Miami, we decided to create a specialized vehicle with the participation of [the Inter-American Investment Corporation] IIC and other multilaterals, as well as local and international banks, to cover small and medium-sized transactions," Juste said.
Today, its shareholder group consists of multilateral organizations (36%) and private banks (64%), led by Spain's Caja Madrid. The World Bank's International Financing Corporation (IFC) is the second largest shareholder.
Initially, the institution started covering transactions for less than US$100mn, with CIFI's participation not exceeding US$10mn per transaction.
"At the beginning we were very conservative, a pure asset taker. Now we have started structuring transactions and advising for structuring, even leading the transactions. We are also exceeding US$100mn per transaction."
The company is also developing new products and strengthening management. "Last year we decided to start subordinated loans," said Juste.
Given that obtaining funding has become more difficult due to the global financial crisis, CIFI has also started to issue credit guarantees.
In addition, the institution is creating a vehicle to invest in the subordinated debt tranches of infrastructure projects, and in this way play a role in a niche that is important for the completion of infrastructure transactions in the region.
"This fund will specialize in Central America and is a vehicle through which we invest, together with other investors, but only in the subordinated debt tranche," said Juste.
To date the corporation has provided around US$500mn to companies in 79 loan transactions with total project costs of US$10.4bn. CIFI also provides financial advisory and structuring and syndication services. The institution has its operating headquarters in Washington, DC.
CIFI's US$210mn loan portfolio covers sectors such as power, renewable energy, transportation, telecommunications, alternative fuels, water and sanitation, and other infrastructure related sectors. Advisory services are also offered to the same sectors, but they are not part of the loan portfolio.
Transactions in which CIFI was involved include the Belcogen power plant in Belize; the La Romana airport in the Dominican Republic; a desalination plant in Trinidad & Tobago; the TGI International oil and gas project in Colombia; telecommunications projects in St Lucia and Chile; and the Ferrovías Central Andina railroad in Peru.
CIFI participates with US$8M in US$153 million IFC Loan to Pan American Energy.
CIFI participates with US$8M in US$153 million IFC Loan to Pan American Energy to help the company develop its oil and gas resources to meet Argentina's growing energy needs.
The financing package consists of loans totaling $50 million for IFC's own account and a $103 million loan raised by IFC from other development institutions and commercial banks including CIFI. IFC's loans extend to eight years, a long loan maturity in Argentina's financial markets.
Pan American Energy, controlled by U.K.-based BP PLC (BP), is the second-largest oil and gas producer in Argentina and has been borrowing money from the IFC for over 20 years. The financing will be used for the company's $700 million expansion program in the Cerro Dragon, Piedra Clavada, and Koluel Kaike blocks located within the Golfo San Jorge basin.
IFC also is working with Pan American Energy to strengthen its work on environmental and social management and will continue its partnership to help train local groups and individuals on how to start and run successful small businesses.
Other participants in the financing include BNP Paribas, Banco Itau BBA, Banco do Brasil, Calyon, Cordiant Capital and Korea Development Bank.
About Pan American Energy
Pan American Energy is a regional hydrocarbons exploration and production regional, with activities in Argentina, Bolivia, and Chile. In the last decade, Pan American Energy has established itself as the second-largest oil and natural gas producer in Argentina. The company accounts for 16 percent of Argentina's hydrocarbons production and is one of the few companies in the country to have consistently increased its oil and gas production in recent years. Since 2000, Pan American Energy has increased its production by 90 percent and replaced 162 percent of its produced reserves.
CIFI signs a US$ 15M loan agreement with OFID, The OPEC Fund for International Development, on August 25, 2009 at OPEC's headquarters in Vienna, Austria
CIFI's CEO, Mr. Juan Jose Juste, and OFID's Director- General, Mr. Suleiman J. Al-Herbish signed on behalf on their institutions. The funds provided by OFID will be used by CIFI for on-lending to small and medium scale private sector infrastructure projects, primarily to companies in Central America and the Caribbean. In addition, CIFI will work closely with OFID in developing opportunities for joint financing of transactions in the region.
CIFI signs US$25 M loan agreement with the Caribbean Development Bank (CDB) on June 9, 2009 at CDB's Headquarters in Barbados
The Caribbean Development Bank (CDB) signed an agreement this morning to provide a loan equivalent to USD25 million to the Corporación Interamericana para el Financiamiento de Infraestructura S.A. (CIFI) to assist CIFI in expanding its lending programme in CDB's borrowing member countries.
CDB's Director of Finance and Corporate Planning, Dr. Warren Smith, signed on behalf of the Bank, while CIFI's General Manager, Mr. Roldán Trujillo, signed on behalf of his institution. CIFI's Chief Executive Officer, Mr. Juan José Juste, was present for the signing at CDB's Headquarters in Barbados, as was CDB's Vice-President (Operations), Mr. Desmond Brunton, who represents CDB on CIFI's Board of Directors.
Following the signing, Mr. Trujillo said "I want to thank CDB for this very important initiative. The loan will be used exclusively to finance private sector transactions in the Caribbean. We already have a portfolio in the Region, but we want to increase our presence through close cooperation and a working relationship with CDB."
The CDB loan to CIFI is expected to contribute to further development of the social and economic infrastructure of the Bank's borrowing member countries, as well as improved capacity and competitiveness. It is also expected to contribute to poverty alleviation in these countries.
Appointment of the new CEO
As part of a management reorganization plan, CIFI's Board of Directors at its meeting of April 24, 2009 appointed Mr. Juan Jose Juste, Chairman of the Board of Director, to the executive post of CEO. Mr. Roldan Trujillo, founding CEO and General Manager, will remain with the company as its General Manager and Chief Operating Officer. Prior to his appointment, Mr. Juste was a Deputy Managing Director of Caja Madrid.
2008 NEWS
The International Finance Corporation (IFC) Investment in CIFI
Washington, D.C., July 15, 2008-IFC, a member of the World Bank Group, today announced that it will provide debt financing and acquire an equity stake in Corporación Interamericana para el Financiamiento de Infraestructura (CIFI), a nonbank financial institution that funds small and midsize infrastructure projects in Latin America and the Caribbean. IFC's investment will boost access to finance for such projects, helping develop infrastructure in the region.
IFC's investment consists of a $20 million loan and a $9.9 million equity investment. IFC will acquire existing shares from such shareholders as the Inter-American Investment Corporation, which will retain shareholding in CIFI, and the Republic Finance and Merchant Bank. Other institutions, including Caja de Ahorros y Monte de Piedad de Madrid (Caja Madrid), Cordiant Capital, Caixa Geral de Depositos, Intesa Sanpaolo, and BPD Bank, will provide additional loans totaling $48.5 million.
Roldan Trujillo, General Manager and CEO of CIFI, said, "We are pleased to welcome IFC as an investor and shareholder in our institution, alongside other multilateral financial institutions and leading European and regional commercial banks. We believe that IFC's presence will be important to supporting our growth strategy."
Atul Mehta, IFC Director for Latin America and the Caribbean, said, "We are delighted to partner with CIFI, which has a complementary focus to that of IFC for the development of infrastructure in Latin America and the Caribbean. CIFI has developed an impressive track record by providing incremental long-term financing for small and medium infrastructure projects."
Jacques Rogozinski, General Manager of the Inter-American Investment Corporation, said, "We are proud to see how CIFI has outgrown our expectations since we jointly created it in 2001 with Caja Madrid. We feel our mission has been partially accomplished and we are confident that CIFI, with the strong support from the IFC, will achieve new and bigger milestones. IIC and IFC share the same commitment to the development of smaller private companies in the region and we look forward to developing a strong relationship with IFC to meet this objective."
CIFI IS APPOINTED LEAD ARRANGER AND FINANCIAL ADVISOR TO CONVIAL CALLAO S.A. FOR THE FINANCING OF PHASE B AND C OF THE CONVIAL CALLAO TOLL ROAD IN LIMA, PERU
Washington, DC-CIFI, a leading Latin America infrastructure financing firm, has announced it has been appointed as the financial advisor and arranger by Convial Callao S.A. of Peru, to structure a US$22 million long-term loan debt package which will allow the Company to complete Phases "B" and "C" of the concessioned toll-road from Lima to the Jorge Chavez International Airport (Lima). The project is estimated to cost about US$40 million covering Phases "A" (completed), "B", and "C" ("the Project").
CIFI APPROVES $8 MILLION LOAN TO GUAYAQUIL'S AIRPORT CONCESSIONAIRE -TAGSA
Washington, DC-CIFI, a leading Latin America infrastructure financing firm, has announced it approved an US$8 million loan as part of a US$40 million refinancing package also arranged by CIFI. Funds will be used to realign Tagsa's balance sheet and create a more appropriate funding structure, and to finance the Company's 2007 and 2008 capital expenditure program. The US$40 million being raised by CIFI will be complemented with shareholders' subordinated long term loans and a parallel senior loan from a local bank.
About TAGSA
Terminal Aeroportuaria de Guayaquil S.A. ("Tagsa"), an Ecuadorian company, was established by Corporación América S.A. (Aeropuertos Argentina 2000) and Dell Air Services (Deller Group of Quito) to act as the concessionaire of the Guayaquil Airport, under a fifteen and a half year concession to build a new international passenger terminal (amongst other works) and operate the airport of Guayaquil, Ecuador. Tagsa began operating the airport in August 2004. Initial investments and operations through December 31, 2006 were completed successfully and the new terminal was inaugurated in August 2006.
2007 NEWS
EQUATOR PRINCIPLES
Arlington, VA, April 06, 2007 - Corporación Interamericana para el Financiamiento de Infraestructura, S.A. (CIFI), a leading financial institution providing structured financing and advisory services for infrastructure projects in Latin America and the Caribbean, has announced its adoption of the Equator Principles. "CIFI embraces the concepts that underline the Equator Principles", said Roldan Trujillo, CIFI's CEO. "We are delighted to join with so many outstanding financial institutions in formally adopting these principles. Through its adoption of these principles, CIFI ratifies its commitment to matters of corporate responsibility, consistent with its continuous quest to align itself with the needs of its customers, shareholders, employees and of the societies in which it pursues its business". The Equator Principles is a set of guidelines developed by private financial institutions for managing environmental and social issues related to project financing. The Equator Principles are based on the environmental and social policies and safeguards of the International Finance Corporation (IFC).
CIFI COMMITS ANOTHER US$5 MILLION FACILITY TOWARDS BELIZE INFRASTRUCTURE DEVELOPMENT
Arlington, VA-CIFI, a leading Latin America and Caribbean infrastructure financing and advisory firm, has announced it committed a US$5 million credit facility to Belize Natural Energy Joint Venture (BNE). Funds will finance capital expenditures at BNE, which recently discovered an oil field of 25 to 50 million barrels of potentially recoverable sweet crude. It is the first major oil discovery in the Central American country.
"BNE succeeded due to the determination of its management. CIFI is pleased to partner with such a committed group of individuals," said Roldan Trujillo, CIFI's CEO. This announcement comes on the heels of CIFI arranging a $53 million credit facility for a Belizean cogeneration energy plant.
About Belize Natural Energy Joint Venture
Belize Natural Energy is a joint venture between CHx Capital, a US-based investment company and International Natural Energy, a group of primarily Irish-based private investors. Its primary activity is the exploration and development of oil and gas in Belize.
2006 NEWS
LATIN AMERICA- SYNDICATED LOAN TO FINANCE INFRASTRUCTURE PROJECTS
June 2006
Client: Corporación Interamericana para el Financiamiento de Infraestructura S.A. (CIFI)
Sector: Financial sector - non-banking financial institution
FMO-financing: FMO "A" loan of USD 16 million as part of a USD 100 million syndication
Partner(s): Caja Madrid, DEG, CABEI and Finnfund
FMO provided USD 16 million as part of a USD 100 million syndicated term loan for Corporación Interamericana para el Financiamiento de Infraestructura S.A. (CIFI), for on-lending to private sector infrastructure projects in Latin America and the Caribbean. The syndication was arranged by FMO and Caja Madrid. CIFI is a regulated financial institution incorporated in Costa Rica with operating headquarter in Washington, DC, that provides long term debt financing and advisory services to private sector companies for projects in power, gas, transportation and associated logistics, water & sanitation, telecommunications, infrastructure related services, tourism and social infrastructure. CIFI's shareholders consist of European Banks and Funds, Latin American and Caribbean commercial banks, and regional Multilateral Financial Institutions.
This syndicated term loan will enable CIFI to expand its infrastructure loan portfolio and provide additional funding to the infrastructure sector in the region, consistent with FMO's strategy.
2004 NEWS
IDB APPROVES $50 MILLION TO SUPPORT SMALL AND MEDIUM-SIZE INFRASTRUCTURE INVESTMENTS IN LATIN AMERICA
October 20, 2004
Credit Facility for Corporación Interamericana para el Financiamiento de Infraestructura
The Inter-American Development Bank today announced the approval of $50 million in financing for Corporación Interamericana para el Financiamiento de Infraestructura,S.A. (CIFI), to support medium- and long-term debt financing for private sector infrastructure projects.
The Bank's support for CIFI, a specialized financial corporation established in 2001 under the laws of Costa Rica, will provide leverage to the equity contributed by the institution's shareholders, which includes three regional multilateral financial institutions as well as seven international commercial banks operating in Latin America and the Caribbean. IDB financing consists of a loan from ordinary capital of up to $25 million (A-loan) and a syndicated (B-loan) of around $25 million, which will be comprised of resources from financial institutions through the subscription of participation agreements with the IDB.
The proceeds of the credit facility will be used by CIFI to on-lend to private sector projects in Latin America and the Caribbean, with a particular focus in the smaller economies of the region. CIFI specializes in financing infrastructure projects in energy, gas, transportation and logistics, water and sanitation, telecommunications, and infrastructure related services. The financing will contribute to the provision of medium and long-term financing for small and medium-sized private sector infrastructure projects in Latin America and the Caribbean, and it is designed to mobilize international resources for tenors that would otherwise not be available. An additional goal of the IDB is to attract potential future lenders and shareholders to CIFI, supporting its institutional development.
