CAF and CDB combine for Colombian cement loan

The Andean Development Corporation (CAF) and China Development Bank (CDB) have signed a short-term facility of US$150mn for the company Cementos Argos, a leading company in the Colombian cement industry and the fifth largest cement producer in Latin America.

The proceeds of the loan will partially finance the construction of a new cement production line at the company plant in the city of Cartagena, Colombia.

The two development agencies will each contribute US$75mn as "part of the strategic agreement between CAF and CDB to finance development projects in Latin America”, according to CAF president and CEO Enrique Garcia.

The Cartagena line will enhance the productive capacity of Cementos Argos by 1.8mn tons and reduce its operating costs, enabling it to meet increased demand from the markets in the US and the Caribbean with competitive exports.