First IFC/MBIA Co-Financing – $240 Million in Financing in El Salvador

MBIA, the Armonk, NY based monoline insurance company, and the International Finance Corporation (“IFC”) invested a total of $240 million to support the expansion of the electricity distribution networks in El Salvador, to bring much needed benefits to the rural areas of the country. Currently, sixty percent of the rural population in El Salvador lacks access to electricity. The investment, which included a $120 million MBIA-guaranteed facility, a $45 million IFC A loan and a $75 million B loan, was used to finance the five-year expansion programs of three private electricity distribution companies in El Salvador: Delphos acted as a financial advisor to AES for this project, and was instrumental in bringing MBIA, who had never previously co-lent with IFC into the transaction. The deal closed in December 2001. The discos, CAESS, EEO and DEUSEM, which were majority-owned by AES, used IFC’s financing to replace antiquated distribution infrastructure, to improve service quality and to expand their networks into underserved rural areas, many which were recovering from the devastating earthquakes which hit El Salvador. MBIA’s facility was used to refinance AES’ original equity investment in the El Salvadorian companies.



  • Renewables & Power

Client Name


Services Provided

  • Capital Raising


  • Latin America & the Caribbean


  • El Salvador