FDN and ICO Ink $50 Million USD Credit Deal to Boost Spain-Colombia Business Ties

The Financiera de Desarrollo Nacional (FDN) and the Instituto de Crédito Oficial (ICO) have entered into a $50 million USD credit agreement under the ICO’s International Channel Line. This initiative aims to support business development between Spain and Colombia by addressing the financial needs of Spanish-affiliated companies operating in Colombia.

The credit agreement intends to fund infrastructure projects for companies with Spanish shareholders domiciled in Colombia. This collaboration seeks to enhance foreign investment in Colombia’s infrastructure sector.

This marks the inaugural collaboration between FDN and ICO under the International Channel Line. Both institutions expressed optimism about establishing a long-term partnership to advance business development between the two nations. Francisco Lozano, president of the FDN, stated, “This credit complements FDN’s financing sources and promotes foreign investment in infrastructure projects that contribute to improving the quality of life for Colombians.”

According to available data, 571 Spanish companies operating in Colombia could qualify for financing under the agreement. Loan repayment terms extend up to 15 years.

Manuel Illueca, President of ICO, emphasized, “This new agreement strengthens ICO’s position in channeling resources to multilateral, public, promotional, or private banks abroad through a traditional and effective program, such as the ICO Lines and their public-private collaboration framework.”

The ICO International Channel Line supports the financing and operations of Spanish-affiliated companies in international markets through partnerships with local financial entities. To date, ICO has signed 45 financing agreements under this initiative, mobilizing approximately €5 billion EUR and supporting more than 500 projects, primarily in Latin America and the Caribbean.

This program simplifies application procedures by leveraging the local market knowledge of partnering entities. It also facilitates financing in local currencies in the countries where the business activities or projects are implemented.

Photo credit: Facebook/Instituto de Crédito Oficial (ICO).