IDB Invest will provide $25 million in financing to American Industrial Park (AIP) – part of Aristos Inmobiliaria – in El Salvador, a company dedicated to the development, construction and management of industrial parks, technology parks and free trade zones.

The financing will facilitate the development and construction of a new free trade zone in the Department of La Libertad, which will include several industrial warehouses for national and international clients. The development will have more than 250,000 m2 of reforested green area with more than 8,000 new trees planted, and will also have a comprehensive recycling and efficient water management programme. Renewable energy sources are also planned to be installed to promote the operational sustainability of the park, mitigating the carbon footprint.

The transaction comprises a committed tranche of US$18 million and an uncommitted tranche of US$7 million. The long-term financing provides for a twelve-year time horizon with a one-year grace period.

The project will boost job creation in El Salvador with an expected hiring of 200 people in the construction and development phase, and more than 3,500 people in the operational phase.

In addition, IDB Invest will provide technical advisory services to validate the implementation of a battery system for electricity storage to improve load back-up.