CIFI to refinance green projects

CIFI to refinance green projects

Bonds Capital Markets Corporate & Sovereign Strategy Fixed Income Project & Infrastructure Finance Structured Finance Energy Renewable Solar Wind Panama Central America

The Panama-based infrastructure bank CIFI plans to refinance $100m in debt with the proceeds from a green bond set for next month, said CEO César Cañedo-Argüelles.

CIFI intends to sell $200m in green bonds before the end of September and use the money to invest in renewable energy and water treatment projects, Cañedo-Argüelles said in an email to LatinFinance.

"We have also established that the use of funds can go to refinance projects we have had in our portfolio for the past 24 months, which total $100m," he added.

CIFI CFO Arturo de Bernard said the bank will issue the notes in different series, according to market demand. The first sale will likely total $25m to $35m and mature in five years, he said. CIFI recently hired MMG Bank to coordinate the bond deal. 

CIFI's bond curve ranges from one year to seven years, Cañedo-Argüelles said, adding that the new notes will pay market rates.

The bank sold $60m in seven-year notes at 6.12% in August last year, led by MMG and Banco Atlántida.

CIFI's shareholders include the banks Banco Pichincha from Ecuador and CaixaBI from Portugal along with the investments funds Finnfund from Finland and Norfund from Norway and the multilateral lenders CDB and CABEI.

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