• Third agreement between the two organizations within the ICO International Channel Line;
• Funding will be earmarked for sustainable projects, such as water and sanitation, renewable energy and industrial decarbonization.

Fortaleza (Brazil), May 16, 2024 — The Instituto de Crédito Oficial (ICO – Official Credit Institute) and FONPLATA – Development Bank have signed a new line of credit of up to USD 25 million to support sustainable projects with the participation of Spanish companies in Latin America.

ICO's General Business Director, Rosario Casero, and FONPLATA's Vice President for Strategic Development, Óscar Llamosas, have signed the document during the 54th General Assembly of ALIDE (Latin American Association of Development Financing Institutions), held in Brazil.

This agreement is the third operation subscribed between both financial institutions since 2018. The first two committed an amount of USD 15 million each, and this one, USD 25 million.

Three projects were benefited by the first two lines: “Construction and improvement of sanitation systems in localities of the Santa Lucía river basin” in Uruguay; “Equipment of the Alcantarí International Airport” in Bolivia; and “Improvement of mobility and connectivity of transport services in the metropolitan region of Buenos Aires, Argentina”.

Sustainable support in Latin America

The new agreement will promote financial support for the green transition in Latin America. The projects to be funded include those aimed at the sustainable use of water and universal access to sanitation, as well as those related to energy efficiency, such as renewable energy production, sustainable transport and industrial decarbonization.

Furthermore, ICO and FONPLATA will seek to channel part of the financial resources to digitalization, technology and innovation projects that promote competitiveness, growth, productivity, and the generation of employment for Spanish businesses in Latin America.

ICO International Channel Line

The objective of the ICO International Channel Line is to support and promote the financing and activity of companies with Spanish interest with international presence in third markets, through intermediation with local financial institutions.

To date, ICO has signed 41 funding agreements under this line, which has enabled it to mobilize more than EUR 4.6 billion and support more than 500 projects of Spanish companies in third markets, especially in Latin America and the Caribbean (LAC).

This program follows the operating scheme of the ICO Lines, based on public-private collaboration, channeling resources to multilateral, public, development or private banks located abroad. It facilitates the application procedures for companies and incorporates the knowledge of the local market of the entity with which the agreement is signed. In addition, it enables financing in local currency in the countries where the business activity or project takes place.

About ICO

ICO, a Spanish corporate state-owned entity, is the State Finance Agency, attached to the Ministry of Economy, Trade and Enterprise. With more than 50 years of experience, ICO has become a benchmark in the financing of companies that contributes to boosting sustainable economic growth, competitiveness and the digital transformation of the Spanish business network, in line with the provisions of its 2022-2027 Strategy and the framework of the Recovery, Transformation and Resilience Plan.

05/16/2024