Chilean State Secures $500M CA Credit Line
- Santiago, Chile – The Chilean state-owned railway company, Empresa de los Ferrocarriles del Estado (EFE), has secured a $500 million credit line from CAF-Development Bank of Latin America.
- Cariola Díez Pérez-cotapos advised EFE, the borrower, on the deal.
- EFE plans to allocate the funds to several key infrastructure projects aimed at improving connectivity.These projects include:
Chilean State Railways Secure $500 Million Credit Line for Expansion
Santiago, Chile – The Chilean state-owned railway company, Empresa de los Ferrocarriles del Estado (EFE), has secured a $500 million credit line from CAF-Development Bank of Latin America. The loan, guaranteed for a 20-year period, will partially finance railway network extension projects across the country.
Financing Details and Legal Counsel
The financing contract was signed on March 11. Cariola Díez Pérez-cotapos advised EFE, the borrower, on the deal. Morales & Besa provided legal support to CAF as the lender. Internal Bogados also supported the lender.
Rail Network Expansion Plans
EFE plans to allocate the funds to several key infrastructure projects aimed at improving connectivity.These projects include:
- Santiago – melipilla Train Line: Infrastructure and superstructure development.
- Santiago – Batuco Train line: Construction of physical works and operating systems.
- Chillán Service - Central Station Improvements: Upgrades to stations, accessibility, platforms, and complementary works.
- New Railway Bridge over the Biobío River: Completion of the project, expected by mid-year.
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Significance of the Transaction
this transaction marks a notable milestone as it is the first time in over 50 years that a Chilean state-owned company has received financing from CAF. The disbursement of funds is contingent upon meeting stringent environmental, social, and technical requirements, including environmental and social guarantees mandated by the multilateral institution. Chile formally joined CAF’s constitutive agreement just over two years ago.
Legal Advisors Appointed for State Railways and CAF Development Bank
Published
Cariola Díez Pérez-Cotapos to Advise State Railways
The State Railways (EFE) have tapped Cariola Díez Pérez-Cotapos for legal counsel. The team representing EFE includes partner Rodrigo Sepúlveda, senior associate Teresita Fernández, and associate Alejandra Díaz.
Morales & Besa Selected by CAF Development Bank
CAF Development Bank of Latin america has chosen Morales & besa as their legal advisors. The team is led by partner José Miguel Carvajal and includes associates José Manuel Meli, María SchnAf, and marína Canziani.
Chilean Railways Expansion: Your questions Answered
What’s the big news about Chilean railways?
The Chilean state-owned railway company, Empresa de los Ferrocarriles del Estado (EFE), has secured a $500 million credit line for expansion projects. This funding comes from CAF-Growth Bank of Latin America and is set to improve railway connectivity across Chile.
Who is providing the financing, and what are the loan terms?
CAF-Development Bank of Latin America is providing the $500 million credit line. The loan has a 20-year term,providing long-term financial backing for EFE’s railway projects.
What will the $500 million credit line be used for?
The funds will partially finance the expansion of Chile’s railway network. EFE has outlined several key infrastructure projects to improve connectivity.
Can you list the specific projects planned for this expansion?
Certainly. According to the data provided, the projects include:
Santiago – Melipilla Train Line: Infrastructure and superstructure development.
Santiago – Batuco Train Line: Construction of physical works and operating systems.
Chillán Service – Central Station Improvements: Upgrades to stations, accessibility, platforms, and complementary works.
new Railway Bridge over the Biobío River: Completion of the project, wich was expected by mid-year.
Which legal firms were involved in the financing deal?
Several legal firms played crucial roles in the transaction:
Cariola Díez Pérez-Cotapos: Advised EFE (the borrower).
Morales & Besa: Provided legal support to CAF (the lender).
* Internal Bogados: Also supported the lender, CAF.
What is the meaning of this financing deal?
This transaction is a notable milestone. It marks the first time in over 50 years that a Chilean state-owned company has received financing from CAF.This highlights a renewed commitment to infrastructure investment and development within Chile.
Are there any conditions attached to the disbursement of these funds?
Yes, the disbursement of the funds is contingent upon meeting stringent environmental, social, and technical requirements. These include environmental and social guarantees mandated by the multilateral institution, CAF-Development Bank of Latin America.
When was the financing contract signed?
The financing contract was signed on March 11th.
When did chile join CAF’s constitutive agreement?
Chile formally joined CAF’s constitutive agreement just over two years before the information was published.
Can you summarize the key details of this transaction in a table?
Absolutely. Here is a summary table:
| Feature | Details |
| :———————– | :———————————————————————————————————————— |
| Borrower | Empresa de los Ferrocarriles del Estado (EFE) |
| Lender | CAF-Development Bank of Latin America |
| Financing Amount | $500 million |
| Loan term | 20 years |
| Purpose | Railway network extension projects |
| Legal Counsel (EFE) | Cariola Díez Pérez-Cotapos |
| Legal counsel (CAF) | Morales & Besa, Internal Bogados |
| Key Projects | Santiago-Melipilla Train Line, Santiago-Batuco Train Line, Chillán Service improvements, Biobío river Bridge completion |
| Significance | First time in over 50 years a Chilean state-owned company has received financing from CAF. |
| Requirements | Meeting environmental, social, and technical requirements.|