Today in Luxembourg, the President of Honduras, Juan Orlando Hernández and European Investment Bank President, Werner Hoyer, signed a USD89 million finance contract for the rehabilitation and upgrading of road sections along the Western Corridor. The project will have positive social and economic impacts and will foster regional integration.
The loan will finance the rehabilitation and upgrading of the road section (i) La Entrada - El Florido, a single carriageway road with a total length of 73 km connecting Honduras with Guatemala and the road section (ii) 43km-long single carriageway connecting La Entrada with Santa Rosa de Copan. In addition, the EIB loan also includes investments for the implementation of a package of road safety components, including horizontal and vertical signing, lighting and barriers.
President Hoyer stated: “Like other countries in the region, Honduras faces big challenges in accelerating its economic and social development.By developing road infrastructure, the EIB funding will support growth and job creation and it will as well strengthenthe competitiveness of the region and increase trade with neighboring countries Guatemala and El Salvador. Living conditions of the local communities in one of the poorest and most deprived regions in Honduras will be significantly improved through enhanced, safer connectivity and better access to centralised social services”.
The project, which forms part of Corredor de Occidente, a top government priority within the comprehensive road development plan launched by the Government, is being cofinanced by other financing institutions and has received a grant from the EU’s Latin America Investment Facility (LAIF) to support investment and technical assistance.
The EIB is providing this loan under the current Latin America mandate, which enables it to support investments designed to develop economic and social infrastructure.
The EIB and Banque des Territoires will each invest €100 million in an investment platform to finance the energy transition of bus fleets across France. Managed by Banque des Territoires, this platform will offer innovative financing to local and urban mobility authorities looking to green their bus fleets to reduce their climate impact. The Clean Buses Platform is part of Caisse des Dépôts’ recovery plan and environmental transition efforts. The EIB’s investment is guaranteed by the European Fund for Strategic Investments (EFSI), the central pillar of the Investment Plan for Europe.
On 11 January, the EIB issued a new EUR 1.5bn Sustainability Awareness Bond (SAB) due 15 May 2041. On the back of demand in excess of EUR 22.5bn (excl. JLM), the transaction was upsized from initial target size (EUR 1bn) and priced at mid-swaps less 7bp, 2bp tighter than initial guidance. The issue had a re-offer yield of -0.003%, offering a spread of 30.6bp over DBR 4.75% 07/04/40 and 6.3bp below FRTR 4.5% 25/04/41.