On Tuesday 31 May, FMO signed a US$15 million senior secured loan, funded by IDF, for an innovative Greenfield project finance transaction. IFC was lead arranger with FMO and the Cordiant/Infrastructure Crisis Fund as parallel lenders. The loan is a 100% Green and Inclusive transaction with bus operator Transambiental in Colombia.
FMO’s funds will mainly be used to scrap old diesel buses and to acquire new, natural gas fueled buses. The project will contribute to a significant reduction of greenhouse gas, improving the overall quality of air in the city, thereby also reducing risks and impacts on public health.
Transambiental is one of the 3 bus operator concessionaires of Cartagena’s new Integrated Mass Transport System named Transcaribe. The new system, expected to transport 450,000 passengers daily, will help Cartagena to move from an old, polluting, overcrowded, uncomfortable and inefficient bus system, towards a cleaner, more reliable and efficient public transportation system. Moreover, Transcribe will provide affordable transport to the middle class and poor, that rely the most on the public transport system. Better traffic flow will improve productivity and overall attractiveness of Cartagena, the main tourist destination in Colombia.
