ICO helps Ecuador to finance Quito's metro
ICO, as the State Financial Agency, has arranged this loan through the Companies Internationalization Fund (FIEM).
The chairwoman of Instituto de Crédito Oficial (ICO), Emma Navarro, and the ambassador of Ecuador to Spain, Miguel Calahorrano, have signed a US$ 183.6 million loan agreement for Ecuador.
The financing is being channelled through the Companies Internationalization Fund (FIEM), part of the State Secretariat for Trade of the Ministry of Economy and Competitiveness, and which is managed by ICO on behalf of the State.
The loan will be used to acquire and finance rolling stock, auxiliary vehicles, equipment and tools for the first line of the Quito Metro in Ecuador and the first metro line in the country.
The interest in the project derives from its high export content, equivalent to 83.86% of the total contract, or US$ 154 million of a total of US$ 184 million. The project will be entirely carried out in factories owned by Spanish companies, including several Spanish SMEs, meaning that around 300 jobs will be created in Spain as a result of this initiative.
The main financing conditions are advantageous for Ecuador, with a very long repayment period and an attractive interest rate thanks to a 35% concessional financing rate.
Approval of this transaction is a reflection of Spain's support for developing infrastructures in Ecuador. It is also an example of the promotion of the internationalisation of Spanish companies in a strategic and highly promising sector. Spanish financing of this emblematic project in the city of Quito will be a determining factor for the image of Spanish companies in the country and the region.
Upon signing the agreement, the Chairwoman of ICO spoke of the close collaboration between both governments and how ICO, as a State Financial Agency, is a fundamental stakeholder in helping Spain to finance infrastructures that are contributing to Ecuador's development. Navarro said, "We continue to support the internationalisation of Spanish companies, one of the strategic pillars of ICO's activities". She added that "This operation will make it possible for companies to contribute their experience to this project and strengthen the Spain brand".
Spain, through ICO, has granted a total of 20 FIEM loans to Ecuador to date, in US dollars and euros, with a combined total of approximately US$ 310 million and nearly EUR 24 million.
Furthermore, lCO also manages the Fund for Promotion and Development (FONPRODE) on behalf of the Ministry of Foreign Affairs and Cooperation. Ecuador has been the beneficiary of 10 operations through this Fund, such as the agreement signed in May for US$ 20 million that will be used, along with co-financing from the World Bank, for a project to support agricultural producers in several Ecuadorian provinces, including those most affected by the earthquake in April.