This press release first appeared on Catholic Relief Services' media center on October 17th, 2024
The U.S. International Development Finance Corporation, the Government of El Salvador, the Development Bank of Latin America and the Caribbean (CAF), Catholic Relief Services (CRS), the Environmental Investment Fund of El Salvador (FIAES), and partners announced the financial close of $1 billion in financing for El Salvador’s repurchase of $1.031 billion of its outstanding bonds at discounts to par. The savings generated by the transaction will support conservation, water security, and ecosystem restoration in the Lempa River watershed.
DFC is providing $1 billion in political risk insurance, while the Development Bank of Latin America (CAF) offers a $200 million standby letter of credit; strengthening the country's financing for ecosystem restoration and conservation efforts.
The Lempa River is crucial for drinking water, industry, and irrigation. The deal could save over $352 million, with $350 million allocated to the Rio Lempa Conservation and Restoration Program over 20 years. This includes $200 million in direct funding and a $150 million endowment.
Catholic Relief Services (CRS) and the Environmental Investment Fund of El Salvador (FIAES) will manage the program with government support, focusing on water security and economic development. The Program will be governed by a seven-member Board of Directors that includes one representative from the Government of El Salvador, one representative from the U.S. Agency for International Development (USAID), and five non-governmental representatives. In addition, El Salvador has also made a number of commitments towards watershed management and water monitoring systems.
This initiative marks a significant commitment to environmental action in El Salvador. Read the full press statement here
