To increase the production capacity of its cement factory, the Corporación Andina de Fomento (CAF) announced that together with the Banco de Credito del Peru (BCP) as part of a cofinancing transaction completed the structuring of long-term leasing $ 162 million for Cemento Andino.

This is a finance lease where the landlord only acts as BCP and share the credit risk assumed with the CAF, which involved by issuing a partial credit guarantee for 50 million dollars on behalf of the BCP.

The principal representative of the CAF in Peru, Eleonora Silva, said that this operation will not only allow Cemento Andino fund the plan for expanding its cement factory and offer their customers a sufficient capacity for cement production, but also represents the momentum to co-financing of private projects by the CAF and local financial institutions.

"This loan supports the position of our institution to support a company with solid financial position and to Peru in the productive sectors," he added.

This grant will allow Cemento Andino expand the production capacity of its cement factory located in the department of Junin, increasing its annual output to at least 800 000 metric tons (MT) of cement and 700 thousand metric tons of clinker.

This transaction represents the largest leasing transaction structured in Peru, besides being the first time you use the participatory leasing scheme in the country.

It thus represents an important impetus in the development of private projects through co-financing between local and multilateral institutions.

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