IFC to provide $16.2 million loan to Brazil’s Tecon Rio Grande
MediaProperties – EMEconomy News
Aug 3, 2004
The International Finance Corporation, the private sector arm of the World Bank Group, will provide a $16.2 million loan to Brazil’s Tecon Rio Grande, S.A. (TRG), to support the company’s expansion program. TRG holds a 25-year concession to operate the Tecon Rio Grande container terminal in southern Brazil. This is the country’s second largest container terminal by volume and a gateway to Brazilian exporters.
IFC’s financial package consists of an $8.1 million loan for IFC’s own account and an $8.1 million syndicated loan for the account of International Finance Participation Trust, a Canadian trust that invests in emerging market project finance loans made by a group of international financial institutions. This will be IFC’s second loan to TRG; in 1998, IFC provided a $31 million loan to finance the company’s first phase of investments.
TRG will use IFC’s financing to purchase additional equipment, extend the existing quay, and expand the stacking yard. The capital expenditure program is expected to expand the terminal’s operations and enhance its efficiency.
In 2003, TRG handled 324,000 container moves, a 21 percent increase over the previous year. In the first five months of 2004, TRG handled 137,000 container moves, 11 percent more than in the same period of 2003. Since it opened in 1997, TRG’s volumes have grown at an annual average growth rate of 33 percent.